CAM Cost Control and Budgeting 2

Question 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)?

Accepted Answer

0.80

Answer

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

Question 2

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

Accepted Answer

The difference between earned value and actual cost

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

Management reserve

Answer

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

Question 5

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

Accepted Answer

Work is ahead of schedule but over cost

Answer

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

(CAM) Control Account Manager Certification Practice Test