Cost Estimation Quiz

What is another term for Capital Cost?

• Depreciation Cost

• Capital Expenditure (CapEx)

• Revenue Expenditure

• Operating Cost

Which factor is NOT considered in estimating purchased equipment costs?

• Equipment capacity

• Material of construction

• Operator skill level

• Time

What is the typical cost exponent (n) for the six-tenths rule?

• 0.5

• 0.6

• 1.0

• 0.8

What type of diagram is used in a Class 4 'Study Estimate'?

• Process and Instrumentation Diagram (P&ID)

• Block Flow Diagram (BFD)

• Isometric Diagram

• Elevation Diagram

What is the primary use of a Plant Cost Index?

• Adjusting historical costs for inflation

• Calculating revenue

• Estimating equipment capacity

• Standardizing material quality

Which type of expenses includes freight, insurance, and taxes?

• Direct expenses

• Installation expenses

• Indirect project expenses

• Maintenance expense

In the Lang Factor Method, what does FLang represent?

• Fixed costs

• Lang factor for total plant costs

• Labor costs

• Freight charges

What is the accuracy range for a Class 1 'Definitive Estimate'?

• ±40% to ±20%

• ±30% to ±20%

• ±25% to ±15%

• ±6% to ±4%

What does a Bare Module Cost include?

• Only material costs

• Labor costs and contingencies

• Direct and indirect costs for equipment

• Operating costs

Which estimating method relies heavily on vendor quotes for equipment?

• Order-of-magnitude estimate

• Study estimate

• Definitive estimate

• Preliminary estimate