CAM Foundational Concepts & Principles 2 — Questions and Answers
Question 1: In an Earned Value Management System (EVMS), what is a control account?
- A management control point where scope, budget, and schedule are integrated for performance measurement (Correct answer)
- A financial ledger used only by the accounting department
- A list of contract deliverables maintained by the customer
- A reserve fund held by the program manager for emergencies
Correct answer: A management control point where scope, budget, and schedule are integrated for performance measurement
A control account is the intersection point of the WBS and OBS where scope, schedule, and budget are integrated and performance is measured.
Question 2: The Control Account Manager (CAM) is primarily responsible for which of the following?
- Planning, managing, and reporting performance of the work within their assigned control account (Correct answer)
- Negotiating the overall contract price with the customer
- Setting corporate accounting policy
- Approving management reserve usage for the entire program
Correct answer: Planning, managing, and reporting performance of the work within their assigned control account
The CAM owns the scope, schedule, and budget of a control account and is accountable for its performance.
Question 3: Which two structures intersect to define a control account?
- Work Breakdown Structure (WBS) and Organizational Breakdown Structure (OBS) (Correct answer)
- Integrated Master Plan and Risk Register
- Statement of Work and Chart of Accounts
- Resource Breakdown Structure and Bill of Materials
Correct answer: Work Breakdown Structure (WBS) and Organizational Breakdown Structure (OBS)
Control accounts are established at the intersection of the WBS (what work) and the OBS (who performs it).
Question 4: What does the Budgeted Cost for Work Performed (BCWP) represent?
- The earned value of work actually accomplished, measured in budget dollars (Correct answer)
- The actual cost invoiced by suppliers to date
- The total budget authorized for the contract
- The forecasted cost to complete remaining work
Correct answer: The earned value of work actually accomplished, measured in budget dollars
BCWP, or earned value, is the budgeted value of the work that has actually been completed.
Question 5: A CAM notices actual costs (ACWP) exceed earned value (BCWP) for the month. What does this indicate?
- An unfavorable cost variance (Correct answer)
- A favorable schedule variance
- The control account is ahead of schedule
- Management reserve must be released
Correct answer: An unfavorable cost variance
Cost variance equals BCWP minus ACWP, so spending more than the value earned produces a negative (unfavorable) cost variance.
Question 6: Which document formally conveys scope, schedule, and budget authority to a CAM?
- The work authorization document (Correct answer)
- The purchase order
- The contract funds status report
- The engineering change proposal
Correct answer: The work authorization document
Work authorization documents formally delegate scope, schedule, and budget to the CAM before work begins.
Question 7: What is the Performance Measurement Baseline (PMB)?
- The time-phased budget plan against which contract performance is measured (Correct answer)
- The customer's independent cost estimate
- The sum of all management reserve and profit
- A milestone chart maintained only for internal review
Correct answer: The time-phased budget plan against which contract performance is measured
The PMB is the time-phased budget baseline, excluding management reserve, against which performance is measured.
CAM Foundational Concepts & Principles 2
In an Earned Value Management System (EVMS), what is a control account?