CAM Advanced Techniques & Methods 3 — Questions and Answers
Question 1: During an Integrated Baseline Review (IBR), what is the CAM primarily expected to demonstrate?
- Understanding of the scope, schedule, budget, and risks in their control account (Correct answer)
- Ability to negotiate contract modifications
- Proficiency with the accounting general ledger
- Authority to approve use of management reserve
Correct answer: Understanding of the scope, schedule, budget, and risks in their control account
The IBR assesses whether the CAM understands and can execute the baseline plan for their control account, including its risks.
Question 2: A CAM's variance analysis report must include which three core elements to be considered complete?
- Root cause, impact, and corrective action plan (Correct answer)
- Budget, funding, and profit analysis
- Staffing plan, org chart, and RAM
- Contract value, fee, and invoice status
Correct answer: Root cause, impact, and corrective action plan
Complete variance analysis explains why the variance occurred, what it affects, and how it will be corrected or managed.
Question 3: Which technique should a CAM use to earn value on a 9-month work package with multiple tangible interim outputs?
- Weighted milestones (Correct answer)
- 50/50 method
- Level of effort
- 0/100 method
Correct answer: Weighted milestones
Weighted milestones assign budget to discrete interim events, making them ideal for longer work packages with tangible outputs.
Question 4: What distinguishes apportioned effort from level of effort in earned value measurement?
- Apportioned effort's earned value is tied to the performance of a related discrete work base (Correct answer)
- Apportioned effort always earns its planned value
- Level of effort requires quantifiable milestones
- Apportioned effort cannot generate variances
Correct answer: Apportioned effort's earned value is tied to the performance of a related discrete work base
Apportioned effort earns value as a factor of a related discrete task's performance, unlike LOE which earns planned value automatically.
Question 5: A CAM discovers actual costs were charged to the wrong control account. What is the proper corrective method?
- Process a documented accounting adjustment moving costs to the correct account (Correct answer)
- Adjust earned value upward to offset the error
- Transfer budget between the accounts to absorb the costs
- Ignore it if the amount is under the variance threshold
Correct answer: Process a documented accounting adjustment moving costs to the correct account
Misbooked costs must be corrected through documented accounting transfers, never by manipulating budget or earned value.
Question 6: Which EAC formula assumes remaining work will be performed at the current cumulative CPI?
- EAC = AC + (BAC − EV) ÷ CPI, which simplifies to BAC ÷ CPI (Correct answer)
- EAC = AC + BAC − EV
- EAC = AC + (BAC − EV) ÷ (CPI × SPI)
- EAC = BAC × SPI
Correct answer: EAC = AC + (BAC − EV) ÷ CPI, which simplifies to BAC ÷ CPI
Dividing remaining work by cumulative CPI assumes past cost efficiency continues, which simplifies to BAC ÷ CPI.
Question 7: When schedule performance is also expected to affect future costs, which EAC approach is most appropriate?
- EAC = AC + (BAC − EV) ÷ (CPI × SPI) (Correct answer)
- EAC = BAC ÷ SPI
- EAC = AC + BAC − EV
- EAC = EV ÷ CPI
Correct answer: EAC = AC + (BAC − EV) ÷ (CPI × SPI)
The composite index (CPI × SPI) factors both cost and schedule efficiency into the estimate for remaining work.
CAM Advanced Techniques & Methods 3
During an Integrated Baseline Review (IBR), what is the CAM primarily expected to demonstrate?