CAM Cost Control and Budgeting 3

Question 1

A CAM needs to add newly authorized in-scope work to a control account. Which is the correct source of budget?

Accepted Answer

Undistributed budget allocated through a formal budget change request

Answer

Newly authorized work receives budget from undistributed budget via a documented, approved change.

Question 2

What is the Variance at Completion (VAC) if BAC is $800,000 and EAC is $920,000?

Accepted Answer

−$120,000

Answer

VAC = BAC − EAC = $800,000 − $920,000 = −$120,000, a projected overrun.

Question 3

Which earned value technique is most appropriate for a discrete work package with tasks spanning several months and measurable interim outputs?

Accepted Answer

Weighted milestones or percent complete with objective criteria

Answer

Longer discrete work packages need objective interim measures such as weighted milestones to claim EV accurately.

Question 4

A control account's cumulative cost variance exceeds the reporting threshold. What must the CAM prepare?

Accepted Answer

A variance analysis report explaining cause, impact, and corrective action

Answer

Threshold breaches require a variance analysis documenting root cause, impact, and the corrective action plan.

Question 5

Why is retroactively changing budgets for completed work generally prohibited in an EVMS?

Accepted Answer

It distorts historical performance data and masks true variances

Answer

Retroactive changes erase the performance record and hide overruns, undermining baseline integrity.

(CAM) Control Account Manager Certification Practice Test