Cost Controls Practice Test

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• What is a baseline in project management?
• Which analysis technique can identify drivers of high costs in a project?
• What does break-even point represent?
• Allowance
• In procurement, variance analysis typically leads to which outcome?
• Taxation’s relation to economic costs as described in the material.
• Which statement reflects Production Reporting requirement?
• Health Insurance rate in this material is described as?
• Cost Engineering includes
• What is the COQ (cost of quality) framework?
• Which term is defined as base salary plus fringe benefits and labor burdens assigned to one item of work?
• Which method assigns progress increments to subtasks strictly based on time requirements?
• What does ACWP stand for in earned value management?
• Which term is associated with rising wages increasing firms' costs and increasing consumers' disposable income?
• Which formula represents Estimated at Completion (EAC) when assuming work will progress at the planned rate?
• Which of the following is a factor that may involve economic costs due to policy or macroeconomic conditions?
• How do you calculate the cost of quality as a percentage of sales?
• Which list contains all six common ways to determine project progress?
• Which progress measurement approach would most likely be used to value progress based on an expert's judgment rather than verifiable data?
• How do you allocate fixed overhead under normal costing?
• Which option is NOT listed as a factor involving economic costs?
• What does Scope describe in cost-control terms?
• What is an example of using the Units Completed method?
• Which term describes a specific portion of the contract documents that states the responsibilities and relationships of all parties to the contract, as well as any conditions applicable to the contract?
• What is a make or buy decision and how is it analyzed?
• Cost is defined as the value of an activity or asset.
• When is the Units Completed method used?
• How does ABC differ from traditional costing?
• Which term concerns the devaluation of currency that influences import/export dynamics between countries?
• Which term includes the contract forms, general and specific conditions, drawings, specifications, and addenda describing the project scope and contract terms?
• Fringe Benefits includes which items?
• Which costs make up prime cost?
• Which term is the amount of money asked or given for a product?
• What is the focus of cost control in project management?
• Which metric summarizes the overall relationship between costs and benefits of a proposed project?
• In the Cost Ratio method, which expression represents Percent Complete?
• Which variance is primarily driven by changes in production volume?
• Allowance
• Which term represents the overall process of tracking and controlling project costs to avoid overruns?
• Which term describes the fall of the price level of goods and services?
• Which term describes the advertisement for bids, instructions to bidders, information available to bidders, bid form with all attachments, and proposed contract documents?
• Which cost category includes taxes and insurance costs paid by the employer on behalf of laborers?
• What is the formula for break-even in dollars for multiple products?
• Define absorption costing versus variable costing.
• Which concept refers to the value of a dollar in the future due to its potential earning capacity?
• What is the purpose of cost management in project management contexts?
• Explain the concept of incremental (differential) cost in decision making.
• Explain life cycle costing.
• Which statement describes labor rate variance and labor efficiency variance?
• What is the purpose of measuring work progress in a project?
• What is the formula for percent complete using the Cost Ratio method?
• Which term is described as one of the factors that may involve economic costs?
• What is the 'Rules of Credit' in project management?
• Which term is defined as data used must reflect actual conditions?
• What is the payback period in project evaluation?
• Which statement best defines Labor Rates?
• Alternate
• Which term describes the tax rate on total taxable income paid?
• What is emphasized in Labor Reporting?
• What is process costing and when is it used?
• Which practice would undermine the cost control system's integrity?
• Which concept is described as changes in the cost or price of specific goods over time?
• Which term denotes the cost incurred by producing an extra unit beyond current production levels?
• How is material price variance calculated?
• Which term is a provision for an increase in the cost of equipment, material, labor, etc., over the costs specified in the contract, due to continuing price-level changes over time?
• Which term describes the tax rate on the total taxable income paid?
• Which term represents the value of an item as reflected in the accounting books?
• Which term describes the loss of potential gain from other alternatives when one option is chosen?
• What is the purpose of comparing actual progress and costs to the baseline?
• What is a spend analysis and how does it support cost control?
• A Cost Element is determined by
• Addendum
• Addendum
• Distributable Cost is defined as
• What is a keep or drop analysis?
• What are key ethical considerations in cost control?
• In absorption costing, what happens to fixed overhead?
• Distributable Cost is best described as
• How is material usage variance calculated?
• Understand the contracts and documents.
• What is the purpose of statusing in project management?
• In incremental analysis, which costs are considered relevant?
• How is margin of safety defined?
• Which term refers to the cost incurred due to an additional unit of product being produced?
• What is activity-based costing (ABC) and its purpose?
• Which formula gives the contribution margin per unit?
• Which term describes inflation caused by demand pulling ahead of supply?
• Which term describes the equipment and materials to be provided and the work to be completed?
• Which statement best reflects the responsibility of staff handling time cards and quantity reports in relation to the cost control system?
• Which expression correctly defines the contribution margin ratio?
• Which statement correctly describes the scope of Cost Engineering?
• Which statement correctly contrasts direct and indirect costs?
• Accurate and complete cost records can be used for documentation to substantiate legal claims.
• Which term is used to describe costs associated with producing additional units beyond base production?
• Who must understand the cost control system?
• Which costing system would be appropriate for homogeneous products in continuous production?
• What best describes standard costing and its typical variances?
• Cost Categories include which of the following?
• Indirect Costs are defined as:
• Explain the concept of cost-to-serve in service operations.
• State Unemployment rate as given is Varies; example which percentage?
• Which term refers to a detailed reporting of what is happening, and when it is happening on the project?
• Fringe Benefits includes which items?
• Loading costs or production units to make a cost report look good is described as what in the cost control system?
• Health insurance may be required by law.
• Which term describes inflation where the increased cost of goods is 'pushed' to others?
• How is progress determined using the Start/Finish method?
• Target costing is best described as which of the following?
• Which term is the relative measure of labor efficiency when compared to a base or norm?
• Which term represents the annual cost of owning, operating, and maintaining an asset over its life?
• Which term is a relative measure of labor efficiency, either good or bad, when compared to an established base or norm?
• What is the Retirement contribution rate listed?
• What is the standard expansion of EAC in project cost management?
• Which ratio summarizes the overall relationship between relative costs and benefits of a proposed project?
• How is a weighted-average contribution margin ratio calculated for a multi-product firm?
• What is the difference between cash flow forecasting and profit forecasting?
• Which term means a quantity of output?
• Which term is defined as a document created by the Architect or Engineer requesting a change or correction to the contract drawings and/or specifications after the contract award?
• Which term refers to changes in the cost or price of specific goods or services over a period of time?
• Which rate goes directly to the employee?
• Which statement best defines Labor Cost?
• Paid Time Off (PTO) typically includes which components?
• Which rule governs production reporting in relation to costs?
• Which term is defined as the tax rate on the next dollar of taxable income?
• Which action best aligns with the purpose of a variance report in management?
• Which term describes inflation when demand grows faster than supply?
• What is rolling budgeting and how does it differ from static budgeting?
• Which statement best differentiates fixed and variable costs with examples?
• Cost Element Groups are used to
• Which term refers to unrecoverable costs incurred on decisions made in the past?
• What is the purpose of forecasting in project management?
• Cost Categories include which of the following?
• Which ethical principle should guide cost-control practices?
• Which metric is the profit on an investment over a period of time, expressed as a proportion of the original investment?
• Economic costs may be beyond the ability of an individual to control.
• What are the two controls needed for a baseline plan?
• What does BAC stand for?
• Which pairing best reflects the relationship between production and costs for a valid report?
• Explain the difference between prime cost and conversion cost.
• Which term is defined as the cost added by producing one additional unit of a product or service?
• Which term describes the detailed reporting of when events occur on the project?
• How is working capital managed to support cost control?
• What is variance analysis and why is it important?
• What is target costing?
• What is the Social Security tax rate listed?
• Which statement best defines cost-to-serve?
• Which term refers to percentage applications above the general overhead and other indirect costs?
• What is the purpose of a variance report?
• COQ components included in numerator for COQ percentage?
• Which concept represents the annual equivalent cost or benefit of owning an asset when considering its entire life?
• How do variance analyses inform procurement decisions?
• What does the Incremental Milestones method involve?
• What is the present value of the cash flows compared to your initial investment?
• Cost Trending involves cost in comparison to accomplishment.
• Life cycle costing phases?
• Pareto's Law in the context of cost control states which of the following?
• How does product mix affect CVP analysis and the use of a weighted-average contribution margin?
• What best describes a flexible budget?
• Which statement best describes the difference between static and flexible budgets?
• Which term describes unrecoverable costs incurred from past decisions?
• A Cost Element is determined by
• Which concept compares the present value of expected cash inflows to the initial investment?
• Which of the following is an example of a fixed cost?
• Which term describes the primary collection of documents that initiate the bidding process, including the advertisement for bids, instructions to bidders, information available to bidders, bid form with attachments, and proposed contract documents?
• Under normal costing, how is overhead allocated?
• Workers Compensation is represented by what metric?
• What is the primary purpose of cost controls in an organization?
• Variable Costs are defined as
• Which description best characterizes Labor Burden?
• Fixed Costs are defined as
• How does budgeting differ from forecasting?
• What does cost-volume-profit (CVP) analysis examine?
• What does BCWP stand for?
• In making make-or-buy decisions, what factors should be considered beyond cost?
• Which term refers to an amount added to the estimate to allow for changes that experience shows will likely be required?
• Which description matches the Rules of Credit as it applies to progress increments?
• How is the break-even point defined in units and dollars?
• Which option best represents the most common form of progress measurement?
• Buy-Out.
• Which of the following is NOT listed as one of the six common methods to determine project progress?
• Which term describes the recording of costs and expenditures on a project?
• In standard costing, what are overhead variances and how do expenditure and volume variances differ?
• What is the formula for gross margin?
• BCWS stands for which term in earned value management?
• Which term denotes a provision for an increase in the cost of equipment, material, labor, etc., over the costs specified in the contract, due to continuing price-level changes over time?
• Direct Costs are defined as:
• Currency variations can influence economic costs.
• Which term means a quantity of output?
• Which incentive for business investment allowing deduction of a percentage of investment costs from taxes?
• Which term denotes the value of an item as recorded on financial statements?