Practice Test GeeksCPC - Certified Project Coordinator Practice Test
← All CPC Flashcard Decks

Project Budget & Cost Control Flashcards

6 cards from real CPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Project Budget & Cost Control flashcards as text

  1. Earned Value (EV) represents:

    Answer: The budgeted value of work actually completed to date

    EV measures how much of the budget has been 'earned' by completing work, independent of what was actually spent.

  2. A Schedule Performance Index (SPI) of 0.8 means the project is:

    Answer: Getting only $0.80 of schedule value for every $1.00 of planned work—behind schedule

    SPI = EV / PV; a value below 1.0 indicates the project is behind schedule relative to the plan.

  3. The Cost Performance Index (CPI) is calculated as:

    Answer: EV divided by AC (Earned Value ÷ Actual Cost)

    CPI = EV / AC; a CPI above 1 means the project is getting more value per dollar spent than planned.

  4. Which term describes the total budget authorized for the project?

    Answer: Budget at Completion (BAC)

    BAC is the total approved budget for the project and serves as the denominator in many EVM calculations.

  5. A project coordinator notices that costs are consistently higher than planned. The BEST corrective action is to:

    Answer: Analyze the root cause of the overrun and implement corrective actions to realign costs

    Root cause analysis ensures the corrective action addresses the actual problem rather than just its symptoms.

  6. Which cost component is directly tied to the amount of work performed and increases as more work is done?

    Answer: Variable cost

    Variable costs change in proportion to the volume of work, such as materials consumed or hours worked.