CPE Cost Estimation & Budget Control

Question 1

What is the primary purpose of cost estimation in engineering projects?

Accepted Answer

Forecast total expenses

Answer

Increase project scope

Answer

Ignore material costs

Answer

Reduce project quality

Question 2

Which cost estimation method uses historical data from similar projects?

Accepted Answer

Analogous estimating

Answer

Parametric estimating

Answer

Bottom-up estimating

Answer

Three-point estimating

Question 3

What is the purpose of budget control?

Accepted Answer

Track spending within limits

Answer

Increase expenses

Answer

Ignore cost overruns

Answer

Reduce project scope arbitrarily

Question 4

Which document outlines the approved budget for a project?

Accepted Answer

Cost baseline

Answer

Scope statement

Answer

Risk register

Answer

Project charter

Question 5

What is contingency reserve used for?

Accepted Answer

For identified risks

Answer

To increase profit

Answer

For project scope changes

Answer

For team bonuses

Question 6

Which cost control technique involves comparing planned and actual costs?

Accepted Answer

Earned Value Management (EVM)

Answer

Trend analysis

Answer

Forecasting

Answer

Variance analysis

Question 7

What is cost variance?

Accepted Answer

Difference between budgeted & actual costs

Answer

Difference in schedule

Answer

Project profit

Answer

Change requests

Question 8

Why is forecasting important in budget control?

Accepted Answer

Predicts future costs

Answer

Ignores actual data

Answer

Delays reporting

Answer

Increases costs

Question 9

What is a key benefit of effective budget control?

Accepted Answer

Completes project within budget

Answer

Delays project completion

Answer

Increases project scope

Answer

Reduces project quality