Practice Test Geeks(CAM) Control Account Manager Certification Practice Test
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Variance Analysis & Corrective Actions 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.

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  1. What does a negative Schedule Variance (SV) indicate in earned value management?

    Answer: Work is behind schedule

    A negative SV (EV - PV < 0) means less work was accomplished than planned, indicating the project is behind schedule.

  2. What is the correct formula for Cost Variance (CV) in earned value management?

    Answer: CV = EV - AC

    Cost Variance equals Earned Value minus Actual Cost; a positive CV means you spent less than budgeted for work actually performed.

  3. A Control Account Manager identifies a Cost Performance Index (CPI) of 0.85. What does this indicate?

    Answer: For every dollar spent, only $0.85 of planned work is being accomplished

    A CPI of 0.85 means the project is getting only $0.85 worth of work for every $1.00 spent, indicating a cost overrun situation.

  4. Which type of variance metric is most reliable when performing root cause analysis on a control account's overall cost health?

    Answer: Cumulative Cost Variance

    Cumulative CV smooths out period-to-period fluctuations and reflects the true overall cost health of the control account, making it the most reliable root cause signal.

  5. Variance Analysis Report (VAR) thresholds that trigger a written explanation are typically defined by which source?

    Answer: The project contract or program management plan

    Variance thresholds for VAR reporting are contractually or procedurally defined and vary by project; there is no universal fixed percentage mandated across all programs.

  6. When a CAM prepares a variance analysis narrative, which element should be addressed first?

    Answer: Root cause identification

    Root cause analysis must precede corrective action because understanding why the variance occurred is the foundation for selecting the appropriate response.

  7. In earned value management, 'Undistributed Budget' (UB) is best described as budget that:

    Answer: Is part of the PMB but not yet allocated to specific control accounts

    Undistributed Budget is within the Performance Measurement Baseline but has not yet been assigned to specific control accounts or work packages pending further planning.