FREE CCE Cost Control & Performance Measurement Questions and Answers

Question 1

What is the primary purpose of cost control in project management?

Accepted Answer

To track and control project expenses to stay within budget.

Answer

To increase the project cost.

Answer

To reduce the scope of the project.

Answer

To minimize risk factors in the project.

Question 2

Which of the following methods is used for performance measurement in project cost control?

Accepted Answer

Earned Value Management (EVM).

Answer

Cost estimation techniques.

Answer

Risk assessment matrices.

Answer

Task dependency analysis.

Question 3

What does Earned Value Management (EVM) help track?

Accepted Answer

Project cost and schedule performance.

Answer

Project cost only.

Answer

Project scope changes.

Answer

Project resource allocation.

Question 4

What is the formula used to calculate the Cost Performance Index (CPI)?

Accepted Answer

CPI = EV / AC.

Answer

CPI = EV / PV.

Answer

CPI = AC / EV.

Answer

CPI = AC / PV.

Question 5

Why is it important to measure performance during project cost control?

Accepted Answer

To ensure the project stays within budget and meets objectives.

Answer

To measure project success after completion.

Answer

To delay the project if necessary.

Answer

To increase the project’s budget if needed.

Question 6

Which of the following is an example of a cost control technique?

Accepted Answer

Forecasting and budget adjustments.

Answer

Project scope definition.

Answer

Time management techniques.

Answer

Risk avoidance strategies.

Question 7

What is the role of variance analysis in cost control?

Accepted Answer

It helps in comparing planned and actual costs, identifying discrepancies.

Answer

It identifies scope creep.

Answer

It tracks time and schedule performance.

Answer

It estimates project risks.

Question 8

What is the primary benefit of performance measurement in cost control?

Accepted Answer

It helps detect cost overruns early and take corrective actions.

Answer

It ensures the project is completed earlier than planned.

Answer

It reduces the need for team collaboration.

Answer

It ensures the project scope is reduced.

Question 9

Why is it important to track both cost and schedule performance?

Accepted Answer

To ensure the project meets both time and financial objectives.

Answer

To manage stakeholder expectations.

Answer

To reduce the scope of the project.

Answer

To avoid project termination.