CAM Cost Control and Budgeting 5

Question 1

A control account has three work packages using 0/100, 50/50, and percent complete techniques. What determines EV at the control account level?

Accepted Answer

The sum of earned value from each work package

Answer

Control account EV is simply the sum of the EV claimed by each of its work packages.

Question 2

Freezing changes to budgets and earned value within the current accounting period primarily protects what?

Accepted Answer

The integrity of current-period performance measurement

Answer

Restricting current-period changes prevents manipulation of variances and preserves data integrity.

Question 3

An EAC of $2.1M against a BAC of $2.0M is projected, and the CAM identifies a recovery plan saving $60,000. What should the CAM's updated EAC reflect?

Accepted Answer

$2.04M, incorporating only realistic, approved recovery actions

Answer

EACs should be the CAM's most realistic projection, including credible recovery actions: $2.1M − $60,000 = $2.04M.

Question 4

Which document authorizes a CAM to perform work and establishes the scope, schedule, and budget for the control account?

Accepted Answer

The work authorization document (WAD)

Answer

The work authorization document formally conveys scope, schedule, and budget authority to the CAM.

Question 5

Indirect costs applied to a control account are typically controlled by whom?

Accepted Answer

Managers of the indirect cost pools, not the CAM

Answer

Indirect rates and pools are managed by functional or pool managers; the CAM manages direct performance.

(CAM) Control Account Manager Certification Practice Test

(CAM) Control Account Manager Certification Practice Test

CAM Cost Control and Budgeting 5