Question 1

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 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

_______________ are associated with an asset and extend the cost management information beyond the acquisition (creation) of the asset to the use and disposal of the asset.

Options :

A : Life-Cycle Costs (LCC)

B : Indirect Costs

C : Fixed Costs

D : Variable Costs

Answer: A

Question 4

The following is the result of the range estimating analysis. If you wish to be 80% certain of not over running the estimate, how much contingency should you add?

Options :

A : ($25)

B : $80

C : It cannot be determined from the table

D : $328

Answer: D

Question 5

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

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