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Prepare the cost estimation sheet for the project under consideration

What is the primary objective of cost estimation in a process plant project?

a: To determine the project schedule Explanation

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b: To identify the project risks Explanation

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c: To establish a budget for the project Explanation

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d: To select the project location Explanation

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Which of the following is a type of cost estimation method?

a: Bottom-up estimating Explanation

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b: Top-down estimating Explanation

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c: Three-point estimating Explanation

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d: All mentioned Explanation

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What is the term for the cost of equipment, materials, and labor required to construct a process plant?

a: Capital Expenditure (CapEx) Explanation

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b: Operating Expenditure (OpEx) Explanation

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c: Maintenance Expenditure (MaintEx) Explanation

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d: Revenue Expenditure (RevEx) Explanation

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Which of the following is a factor that affects the accuracy of cost estimation?

a: Project complexity Explanation

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b: Availability of historical data Explanation

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c: Team experience Explanation

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d: All mentioned Explanation

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What is the purpose of a Work Breakdown Structure (WBS) in cost estimation?

a: To identify project risks Explanation

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b: To develop a project schedule Explanation

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c: To estimate costs at a detailed level Explanation

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d: To allocate resources to tasks Explanation

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Which of the following cost estimation techniques is based on the idea that the cost of a project is proportional to the cost of a similar project?

a: Analogy estimating Explanation

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b: Bottom-up estimating Explanation

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c: Top-down estimating Explanation

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d: Parametric estimating Explanation

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What is the term for the cost of operating and maintaining a process plant over its lifetime?

a: Capital Expenditure (CapEx) Explanation

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b: Operating Expenditure (OpEx) Explanation

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c: Maintenance Expenditure (MaintEx) Explanation

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d: Revenue Expenditure (RevEx) Explanation

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Which of the following is a type of cost that is incurred during the operation of a process plant?

a: Fixed cost Explanation

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b: Variable cost Explanation

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c: Sunk cost Explanation

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d: All mentioned Explanation

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What is the purpose of a cost contingency in cost estimation?

a: To account for unexpected expenses Explanation

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b: To allocate resources to tasks Explanation

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c: To develop a project schedule Explanation

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d: To identify project risks Explanation

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Which of the following is a best practice in cost estimation for process plant projects?

a: Using a single cost estimation method Explanation

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b: Using multiple cost estimation methods Explanation

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c: Ignoring cost contingencies Explanation

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d: Not updating cost estimates during the project Explanation

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