CCC Cost Control & Performance Measurement

Question 1

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

Accepted Answer

To keep project expenses within budget

Answer

To maximize profit margins

Answer

To increase labor costs

Answer

To eliminate cost estimation

Question 2

Which performance measurement technique is commonly used in cost control?

Accepted Answer

Earned Value Management (EVM)

Answer

Cost-Benefit Analysis

Answer

Monte Carlo Simulation

Answer

Cash Flow Analysis

Question 3

What does a Cost Performance Index (CPI) value greater than 1 indicate?

Accepted Answer

The project is under budget

Answer

The project is over budget

Answer

The project is behind schedule

Answer

The project scope has increased

Question 4

Which tool is used to forecast future project costs based on historical data?

Accepted Answer

Trend Analysis

Answer

Monte Carlo Simulation

Answer

Break-Even Analysis

Answer

Value Engineering

Question 5

Which financial document is used to compare planned and actual project costs?

Accepted Answer

Variance Report

Answer

Balance Sheet

Answer

Statement of Cash Flows

Answer

Income Statement

Question 6

Why is Key Performance Indicator (KPI) tracking important in cost control?

Accepted Answer

To monitor project efficiency and control costs

Answer

To reduce project deadlines

Answer

To eliminate the need for budgeting

Answer

To increase administrative tasks