CAM Earned Value Management 2 — Questions and Answers
Question 1: A control account has BCWS of $200,000 and BCWP of $180,000 at the end of the month. What is the schedule variance (SV)?
- +$20,000
- -$380,000
- -$20,000 (Correct answer)
- $0
Correct answer: -$20,000
SV = BCWP - BCWS = $180,000 - $200,000 = -$20,000, indicating the account is behind schedule.
Question 2: Which earned value technique is MOST appropriate for a discrete work package spanning two accounting periods with a clear start and end milestone?
- 50/50 method (Correct answer)
- Level of effort
- Apportioned effort
- Percent complete with no objective criteria
Correct answer: 50/50 method
The 50/50 method earns half the budget at start and half at completion, fitting short discrete tasks that span two periods.
Question 3: A CAM reports CPI of 0.85 on a control account with a BAC of $500,000. Using a CPI-based EAC formula, what is the estimate at completion?
- Approximately $425,000
- Approximately $500,000
- Approximately $650,000
- Approximately $588,000 (Correct answer)
Correct answer: Approximately $588,000
EAC = BAC / CPI = $500,000 / 0.85 ≈ $588,235, projecting the overrun continues at the current efficiency.
Question 4: In an EVMS-compliant baseline, where does management reserve (MR) reside?
- Inside each control account budget
- Outside the performance measurement baseline but within the contract budget base (Correct answer)
- Within undistributed budget
- Distributed across work packages as contingency
Correct answer: Outside the performance measurement baseline but within the contract budget base
MR is held above the PMB by the program manager and is not part of any control account until formally allocated.
Question 5: Which condition requires a variance analysis report (VAR) from a Control Account Manager?
- Any negative variance regardless of size
- Only when the customer requests one
- A cost or schedule variance exceeds established thresholds (Correct answer)
- Only at contract completion
Correct answer: A cost or schedule variance exceeds established thresholds
VARs are triggered when variances breach the dollar or percentage thresholds defined in the program's EVM system description.
Question 6: A work package planned as level of effort (LOE) will always show what schedule variance?
- Zero, because BCWP always equals BCWS (Correct answer)
- Negative, because LOE lags discrete work
- Positive, because LOE earns value early
- Unpredictable, depending on actual costs
Correct answer: Zero, because BCWP always equals BCWS
LOE earns value with the passage of time, so earned value always equals planned value and SV is always zero.
Question 7: What does the To-Complete Performance Index (TCPI) based on BAC measure?
- The schedule efficiency achieved to date
- The ratio of management reserve to remaining budget
- The percentage of work physically complete
- The cost efficiency required on remaining work to finish within the budget at completion (Correct answer)
Correct answer: The cost efficiency required on remaining work to finish within the budget at completion
TCPI(BAC) = (BAC - BCWP) / (BAC - ACWP), showing the CPI needed on remaining work to hit the BAC.
CAM Earned Value Management 2
A control account has BCWS of $200,000 and BCWP of $180,000 at the end of the month.
What is the schedule variance (SV)?