Question 1

_______________ 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 2

An information-gathering technique that is not used in risk identification is:

Options :

A : Development of Risk Management Plans

B : Expert Opinion

C : Brainstorming

D : Questionnaire surveys

Answer: A

Question 3

Management perceives strong competition for the project being bid, but very much wants to be awarded the contract. As a result what action are they likely to take?

Options :

A : All of the Answers are correct

B : Direct the cost to be reduced

C : Reduce the general and administrative cost

D : Reduce the profit margin

Answer: A

Question 4

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

Options :

A : Costing

B : Quantification

C : Scoping

D : Pricing

Answer: C

Question 5

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

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