Question 1

A cost that represents funds already spent by virtue of past decisions is:

Options :

A : Book cost

B : Inflation

C : Opportunity cost

D : Sunk cost

Answer: D

Question 2

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 3

The term “field cost” refers to _________________.

Options :

A : All work within battery limits

B : Site grading and compaction

C : Costs associated with greenfield projects

D : Engineering and construction costs associated with the construction site rather than with the home office

Answer: D

Question 4

_______________ 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 5

With respect to Risk Assessment Analysis, identify a false statement from below:

Options :

A : Risk assessment scores should receive appropriate analysis after the conclusion of the identification meetings if there is a question of accuracy

B : Qualitative risk analysis is the assignment of subjective values to risk management items

C : Considerations should be made to identify the formation of the risk management team

D : Risk management of small projects may benefit from a three point scale

Answer: C

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