Question 1

A common explanation of differences between two estimates is:

Options :

A : The estimator has made a mistake

B : Different estimating software was used in preparation of the two estimates

C : The estimates were prepared at different points in time

D : A change has been made in the scope of the project

Answer: D

Question 2

As a cost professional, you are requested to perform project screening in ten minutes. Which one of following projects is worthy of further review?

Options :

A : Project B requires $30 million investment, resulting in $14 million in benefits

B : Project A requires $50 million investment, resulting in $20 million in benefits

C : Project C requires $40 million investment, resulting in $15 million in benefits

D : Project D requires $20 million investment, resulting in $3 million in benefits

Answer: A

Question 3

A budget estimate is typically but not always a Class-----estimate.

Options :

A : 1

B : 5

C : 4

D : 3

Answer: D

Question 4

With respect to Risk Assessment Analysis, identify a false statement from below:

Options :

A : Risk assessment scores should receive appropriate analysis after the conclusion of the identification meetings if there is a question of accuracy

B : Qualitative risk analysis is the assignment of subjective values to risk management items

C : Considerations should be made to identify the formation of the risk management team

D : Risk management of small projects may benefit from a three point scale

Answer: C

Question 5

A cost that represents funds already spent by virtue of past decisions is:

Options :

A : Book cost

B : Inflation

C : Opportunity cost

D : Sunk cost

Answer: D