Question 1

In a manufacturing operation, at 100 percent of capacity, annual costs are as follows:

Fixed expenses $5,203,440

Variable expenses $7,091,040

Semi-variable expenses $6,217,750

Sales $26,385,480

Given that semi-variable expenses at zero production equal 30% of such expenses at 100% of capacity,

the respective shutdown and break-even points would be:

Options :

A : 12.5% shutdown point and 36.6% break-even point

B : Cannot be determined from the given information

C : 47.3% shutdown point and 12.5% break-even point

D : 12.5% shutdown point and 47.3% break-even point

Answer: D

Question 2

The documents needed for a quantity survey include:

Options :

A : Project drawings

B : Project specifications

C : General conditions

D : All the answers are correct

Answer: D

Question 3

Management reserve is ______________.

Options :

A : Usually under the control of the project team

B : Another term for "contingency"

C : An amount outside the project scope and cost baseline to allow for discretionary management purposes

D : Reserved for work outside the original scope

Answer: C

Question 4

If you suspect a contractor’s bid estimate is unbalanced, which of the following best describes what to look for in an estimate review?

Options :

A : Errors and omissions concentrated in only a few elements of the work breakdown or cost account structure

B : Items that will be purchased or installed early and seem to have very high cost values

C : Extremely high escalation costs, particularly for those items installed later in the project schedule

D : Allowances for overtime that on balance appear to be excessive

Answer: B

Question 5

After planning, what is the first process in estimate preparation?

Options :

A : Costing

B : Quantification

C : Scoping

D : Pricing

Answer: C

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