Practice Test GeeksCPC - Certified Project Coordinator Practice Test
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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. A sunk cost in project management refers to:

    Answer: Money already spent that cannot be recovered, regardless of future decisions

    Sunk costs are irreversible expenditures that should not influence future project decisions.

  2. The Estimate at Completion (EAC) represents:

    Answer: The expected total cost of the project based on current performance

    EAC forecasts what the project will actually cost when complete, accounting for actual performance to date.

  3. Bottom-up estimating is considered more accurate than analogous estimating because:

    Answer: It aggregates detailed estimates for every individual work package rather than using historical averages

    Bottom-up estimating builds the total estimate from granular work package detail, reducing estimation error.

  4. A project coordinator is asked to produce a cost estimate with ±10% accuracy. This level of estimate is best described as a:

    Answer: Definitive estimate

    A definitive estimate requires detailed scope information and carries accuracy typically in the ±5–10% range.

  5. Cost aggregation in project management involves:

    Answer: Rolling up work package cost estimates to control accounts and then to the overall project budget

    Cost aggregation sums lower-level estimates upward through the WBS to produce the overall project cost baseline.

  6. An invoice arrives for work that was completed two months ago. This cost should be recorded when:

    Answer: The work was actually performed, not when the invoice was received

    Accrual accounting records costs when work is performed, ensuring project financials reflect actual progress.