A project budget is $88,000. Actual cost to date is $52,000 and estimated cost to complete is $41,000. What is the projected overrun?
Correct Answer
A) $5,000.
Projected total cost is $52,000 + $41,000 = $93,000. Compared with the $88,000 budget, the overrun is $5,000.
Why This Is the Correct Answer
Projected total cost is $52,000 + $41,000 = $93,000. Compared with the $88,000 budget, the overrun is $5,000.
Why the Other Options Are Wrong
Option B: $2,500.
$2,500. is below the supported result for cost-to-complete forecast; it likely uses the wrong base, period, or account bucket.
Option C: $6,000.
$6,000. is above the supported result for cost-to-complete forecast; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $4,750.
$4,750. is below the supported result for cost-to-complete forecast; it likely uses the wrong base, period, or account bucket.
Memory Technique
Updating Job-Cost money test: bucket before math for cost-to-complete.
Reference Hint
Study anchor (closed-book): memorize Cost-to-complete forecast from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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