CAM Earned Value Management 3 — Questions and Answers
Question 1: A CAM discovers actual costs were charged to the wrong control account. What is the proper corrective action?
- Adjust BCWP downward to offset the erroneous ACWP
- Process a cost transfer correcting the mischarge with documented justification (Correct answer)
- Move budget from the correct account to cover the charge
- Ignore it if the variance stays within thresholds
Correct answer: Process a cost transfer correcting the mischarge with documented justification
Misbooked actuals must be corrected through a documented cost transfer, never by manipulating earned value or budgets.
Question 2: Which document authorizes a CAM to begin work and defines the scope, schedule, and budget of a control account?
- Contract data requirements list
- Integrated master plan
- Responsibility assignment matrix
- Work authorization document (Correct answer)
Correct answer: Work authorization document
The work authorization document formally releases scope, schedule, and budget to the CAM before work begins.
Question 3: During an integrated baseline review (IBR), what is the primary focus regarding control accounts?
- Assessing whether the baseline is realistic and risks are understood (Correct answer)
- Auditing invoices for allowable costs
- Negotiating contract fee arrangements
- Approving overtime for the CAM's team
Correct answer: Assessing whether the baseline is realistic and risks are understood
An IBR validates that the performance measurement baseline is achievable and that CAMs understand their scope, schedule, budget, and risks.
Question 4: A control account shows SPI of 1.10 and CPI of 0.80. What is the best interpretation?
- Work is behind schedule and under budget
- Work is on schedule and on budget
- Work is ahead of schedule but costing more than planned (Correct answer)
- The data must be erroneous since the indices conflict
Correct answer: Work is ahead of schedule but costing more than planned
SPI above 1.0 means ahead of schedule, while CPI below 1.0 means each earned dollar costs more than budgeted.
Question 5: What is the correct handling of budget for authorized, unpriced work (AUW) that has been negotiated but not yet distributed to control accounts?
- Add it to management reserve
- Hold it in undistributed budget until it is allocated (Correct answer)
- Book it directly as ACWP
- Spread it evenly across existing work packages
Correct answer: Hold it in undistributed budget until it is allocated
Budget not yet distributed to control accounts is held in undistributed budget, which is part of the PMB.
Question 6: A CAM wants to change the earned value method on an open work package from milestone-weighted to percent complete because performance looks poor. Why is this prohibited?
- Percent complete is never an allowed technique
- Only the customer may select earned value methods
- Milestone weighting cannot be applied to open work packages
- Retroactive changes to measurement methods mask true performance and violate EVMS discipline (Correct answer)
Correct answer: Retroactive changes to measurement methods mask true performance and violate EVMS discipline
Changing measurement methods on in-process work to improve reported results distorts performance data and breaches EVMS guidelines.
Question 7: Which element of a control account plan time-phases the budget over the period of performance?
- The BCWS spread by accounting period (Correct answer)
- The actual cost ledger
- The management reserve log
- The subcontract terms and conditions
Correct answer: The BCWS spread by accounting period
The time-phased BCWS establishes when budget is planned to be earned, forming the account's schedule baseline for measurement.
CAM Earned Value Management 3
A CAM discovers actual costs were charged to the wrong control account.
What is the proper corrective action?