PROJECT COST ESTIMATION CERTIFICATION EXAM PRACTICE
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALE
1. What is the primary purpose of cost estimating in project
management?
A. To eliminate all project risks
B. To determine the expected cost of completing project work
C. To assign employees to departments
D. To develop the project charter
Correct Answer: B
Rationale: Cost estimating develops an approximation of the monetary
resources required to complete project activities and deliverables .
2. Which type of project cost estimate is the most accurate?
,A. Order of magnitude estimate
B. Budget estimate
C. Definitive estimate
D. Preliminary estimate
Correct Answer: C
Rationale: A definitive estimate is a detailed, accurate estimate typically
used for final project budgeting, often with an accuracy range of −5% to
+5% .
3. An order of magnitude estimate is typically used for initial project
screening and has an accuracy range of:
A. −5% to +5%
B. −10% to +15%
C. −25% to +75%
D. −15% to +20%
Correct Answer: C
,Rationale: Order of magnitude estimates are high-level, rough
estimates used for initial screening, with accuracy typically ranging
from −25% to +75% .
4. Which estimating technique uses similar activities from past projects
and extrapolates a likely current cost estimate?
A. Analogous estimating
B. Parametric estimating
C. Bottom-up estimating
D. Three-point estimating
Correct Answer: A
Rationale: Analogous estimating uses similar activities from the past
and extrapolates from them a likely current cost estimate .
5. Which estimating technique multiplies a known quantity by a known
unit cost to arrive at a cost estimate?
, A. Analogous estimating
B. Parametric estimating
C. Bottom-up estimating
D. Three-point estimating
Correct Answer: B
Rationale: Parametric estimating multiplies a known quantity (e.g.,
square footage, weight) by a known unit cost (e.g., cost per square
foot) to arrive at a cost estimate .
6. Which estimating technique aggregates lower-level cost estimates up
to higher levels to arrive at a total project cost estimate?
A. Analogous estimating
B. Parametric estimating
C. Bottom-up estimating
D. Three-point estimating
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALE
1. What is the primary purpose of cost estimating in project
management?
A. To eliminate all project risks
B. To determine the expected cost of completing project work
C. To assign employees to departments
D. To develop the project charter
Correct Answer: B
Rationale: Cost estimating develops an approximation of the monetary
resources required to complete project activities and deliverables .
2. Which type of project cost estimate is the most accurate?
,A. Order of magnitude estimate
B. Budget estimate
C. Definitive estimate
D. Preliminary estimate
Correct Answer: C
Rationale: A definitive estimate is a detailed, accurate estimate typically
used for final project budgeting, often with an accuracy range of −5% to
+5% .
3. An order of magnitude estimate is typically used for initial project
screening and has an accuracy range of:
A. −5% to +5%
B. −10% to +15%
C. −25% to +75%
D. −15% to +20%
Correct Answer: C
,Rationale: Order of magnitude estimates are high-level, rough
estimates used for initial screening, with accuracy typically ranging
from −25% to +75% .
4. Which estimating technique uses similar activities from past projects
and extrapolates a likely current cost estimate?
A. Analogous estimating
B. Parametric estimating
C. Bottom-up estimating
D. Three-point estimating
Correct Answer: A
Rationale: Analogous estimating uses similar activities from the past
and extrapolates from them a likely current cost estimate .
5. Which estimating technique multiplies a known quantity by a known
unit cost to arrive at a cost estimate?
, A. Analogous estimating
B. Parametric estimating
C. Bottom-up estimating
D. Three-point estimating
Correct Answer: B
Rationale: Parametric estimating multiplies a known quantity (e.g.,
square footage, weight) by a known unit cost (e.g., cost per square
foot) to arrive at a cost estimate .
6. Which estimating technique aggregates lower-level cost estimates up
to higher levels to arrive at a total project cost estimate?
A. Analogous estimating
B. Parametric estimating
C. Bottom-up estimating
D. Three-point estimating
