Question

1. When the amount that has been earned (BCWP) is consistently below the actual cost to date (ACWP), it can be concluded that the project is under cost.

True

False

QUESTION 2

16.6       The main purpose of an audit of a construction company’s financial statements is to:

		Confirm that the statement was prepared in accordance with GAAP rules
		Prepare income tax returns
		Check the arithmetic used in the financial statement
		Find employee malfeasance

QUESTION 3

16.5       From the project lifecycle, we can learn all of the following except:

		Early CM involvement helps to optimized time and cost management
		Material and labor expenditures should be leveled to manage cash flow
		Project risk declines with time
		Cost of change increases with time

QUESTION 4

16.3       Which of the following best describes the challenges in managing demobilization?

		Managing labor productivity for smaller, fussier tasks and managing worker expectations
		Maintaining the project owner's attention
		Slow government approvals
		Subcontractors are unwilling to complete work until finally paid

QUESTION 5

16.1       When the amount that has been earned (BCWP) is consistently below the amount that was supposed to be earned (BCWS), it can be concluded that the project is behind schedule.

True

False

QUESTION 6

16.7      Cost estimating and the resulting data are used for all purposes except:

		Financial Management of the CM Company
		Planning the project
		Monitoring and controlling costs
		Costing to win the project

1. 16.4       Closeout procedures can also benefit the construction manager’s long-term performance in all ways except:

		Lessons learned from the project can improve performance on similar future projects.
		The closeout documents are the construction manager's property, so the owner must work with the construction manager when future renovations or additions are performed
		The closeout interview between senior construction management personnel and the project owner increases the likelihood of future construction work.
		Retention of excellent contract document records can benefit the project owner in future renovations.

Answer 1

Q. When the amount that has been earned (BCWP) is consistently below the actual cost to date (ACWP), it can be concluded that the project is under cost.

It is False as Cost Variance = BCWP-ACWP = Negative Value therefore the budget is overcost.

QUESTION 2

16.6 The main purpose of an audit of a construction company’s financial statements is to:

Answer : - Confirm that the statement was prepared in accordance with GAAP rules

QUESTION 3

16.5 From the project lifecycle, we can learn all of the following except:

Answer. Project risk declines with time. It is a false statement. Project risk increase as the time increase.

QUESTION 4

16.3 Which of the following best describes the challenges in managing demobilization?

Answer Managing labor productivity for smaller, fussier tasks and managing worker expectations

QUESTION 5

16.1 When the amount that has been earned (BCWP) is consistently below the amount that was supposed to be earned (BCWS), it can be concluded that the project is behind schedule.

True. Because Schedule variance= BCWP-BCWS = Positive therefore the project is behind the schedule.

QUESTION 6

16.7 Cost estimating and the resulting data are used for all purposes except:

Answer: Financial Management of the CM Company, because CM company is only hired by owner to manage the project at some fixed price. There finance management is done by themself only.

16.4 Closeout procedures can also benefit the construction manager’s long-term performance in all ways except: The closeout documents are the construction manager's property, so the owner must work with the construction manager when future renovations or additions are performed.

The closeout documents belong to both owner and contractor but it is not a binding to get the renovation work done from same construction manager.