Question 1

Cost variance greater than 20% is an example of a:

Options :

A : Management reserve

B : Active risk acceptance

C : Contingency allowance

D : Risk trigger

Answer: D

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

Which of the following is a non-cash outlay associated with a process manufacturing project?

Options :

A : Depreciation expenses

B : Corporate federal income taxes

C : Interest expenses

D : Operating expenses such as labor and material

Answer: A

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

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

Options :

A : 1

B : 5

C : 4

D : 3

Answer: D

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