Practice Test Geeks(CPE) Certified Planning Engineer Practice Test
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Cost Estimation & Budget Control Flashcards

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

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  1. A project has a BAC of $500,000, an EV of $300,000, and an AC of $350,000. What is the Cost Performance Index (CPI)?

    Answer: 0.86

    CPI = EV / AC = $300,000 / $350,000 = 0.857, indicating cost overrun.

  2. Which cost estimating technique uses historical data from similar past projects as the primary basis?

    Answer: Analogous estimating

    Analogous estimating uses historical data from similar projects to estimate current project costs.

  3. Estimate at Completion (EAC) using the formula EAC = BAC / CPI assumes:

    Answer: Future cost performance will match current CPI

    EAC = BAC / CPI assumes the current cost efficiency will continue for all remaining work.

  4. What does a negative Cost Variance (CV) indicate?

    Answer: The project is over budget

    CV = EV - AC; a negative CV means actual costs exceed earned value, indicating an over-budget condition.

  5. Which type of cost reserve is established for known unknowns in a project?

    Answer: Contingency reserve

    Contingency reserve covers identified risks (known unknowns) and is part of the cost baseline.

  6. A parametric cost model for construction estimates $250 per square foot. If the building is 10,000 sq ft, what is the estimated cost?

    Answer: $2,500,000

    $250 × 10,000 sq ft = $2,500,000 using the parametric unit-rate method.

  7. The To-Complete Performance Index (TCPI) based on BAC is calculated as:

    Answer: (BAC - EV) / (BAC - AC)

    TCPI = (BAC - EV) / (BAC - AC), representing the required future cost efficiency to finish within BAC.