Practice Test Geeks(CAM) Control Account Manager Certification Practice Test
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Cost Control and Budgeting Flashcards

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

Read the first 7 Cost Control and Budgeting flashcards as text

  1. A control account has a BAC of $500,000, an EV of $200,000, and an AC of $250,000. What is the Cost Performance Index (CPI)?

    Answer: 0.80

    CPI = EV / AC = $200,000 / $250,000 = 0.80, meaning the account earns $0.80 of value per dollar spent.

  2. In earned value management, what does the Cost Variance (CV) measure?

    Answer: The difference between earned value and actual cost

    CV = EV − AC, showing whether work performed cost more or less than budgeted.

  3. A Control Account Manager discovers actual costs charged to the wrong control account. What is the appropriate corrective action?

    Answer: Process a documented cost transfer to move the charges to the correct account

    Misbooked costs must be corrected through a documented, traceable cost transfer, not budget changes or reserves.

  4. Which budget element is held by the program manager for unknown-unknowns and is NOT part of the Performance Measurement Baseline?

    Answer: Management reserve

    Management reserve sits outside the PMB and is controlled by the program manager for unforeseen in-scope work.

  5. A control account shows CPI = 0.90 and SPI = 1.05. How should the CAM interpret this status?

    Answer: Work is ahead of schedule but over cost

    SPI above 1.0 indicates ahead of schedule, while CPI below 1.0 indicates cost overrun.

  6. What is the formula for Estimate at Completion (EAC) when current cost performance is expected to continue?

    Answer: EAC = BAC / CPI

    Dividing BAC by CPI projects total cost assuming the current cost efficiency continues to completion.

  7. During an Integrated Baseline Review (IBR), what is the CAM primarily expected to demonstrate?

    Answer: Understanding of the scope, schedule, budget, and risks in their control account baseline

    The IBR verifies that CAMs own and understand their baseline, including scope, resources, schedule, and risk.