CAM Cost Control and Budgeting 4

Question 1

What is the To-Complete Performance Index (TCPI) based on BAC if BAC = $1,000,000, EV = $400,000, and AC = $500,000?

Accepted Answer

1.20

Answer

TCPI = (BAC − EV) / (BAC − AC) = $600,000 / $500,000 = 1.20, the efficiency needed to finish on budget.

Question 2

Which statement best describes a control account in an EVMS structure?

Accepted Answer

The intersection of a WBS element and an organizational unit where cost, schedule, and scope are managed

Answer

A control account is the management control point formed at the intersection of the WBS and the OBS.

Question 3

A CAM is asked to begin work that the customer has verbally approved but has not yet been definitized. What should the CAM require first?

Accepted Answer

Formal work authorization before charging to the account

Answer

No work should begin or be charged without formal, documented work authorization.

Question 4

Actual costs in a control account should be recorded in a manner consistent with which other element?

Accepted Answer

The way the corresponding budget was planned and earned value is claimed

Answer

Budget, earned value, and actual cost must be recorded consistently so variances are meaningful.

Question 5

Which condition typically triggers an Over-Target Baseline (OTB)?

Accepted Answer

The remaining budget is insufficient to realistically plan the remaining work

Answer

An OTB reprograms the baseline when remaining budgets are no longer adequate for realistic planning of remaining work.

(CAM) Control Account Manager Certification Practice Test