CAM Industry Regulations & Compliance 3

Question 1

A CAM is asked by a program manager to set earned value equal to actual costs to eliminate a cost variance. What should the CAM do?

Accepted Answer

Refuse, because manipulating earned value violates EVMS integrity requirements

Answer

Setting earned value to match actuals falsifies performance data and violates EVMS guidelines and federal reporting integrity rules.

Question 2

Under EVMS rules, management reserve (MR) may be used for which of the following?

Accepted Answer

Unforeseen in-scope work within the current contract

Answer

MR is budget held for unexpected in-scope effort and can never be used to offset existing variances or fund out-of-scope work.

Question 3

Which document formally describes how a contractor's EVMS operates and serves as the standard against which compliance is assessed?

Accepted Answer

The EVM System Description

Answer

The EVM System Description documents the contractor's processes and is the benchmark used in compliance reviews.

Question 4

What is the compliance consequence when DCMA identifies significant EVMS deficiencies that the contractor fails to correct?

Accepted Answer

Potential withholding of contract payments and withdrawal of system validation

Answer

Persistent deficiencies can lead to payment withholds under DFARS business systems rules and loss of EVMS validation.

Question 5

A control account's budget may be changed retroactively under EVMS rules only when:

Accepted Answer

Correcting documented errors or accounting adjustments through formal change control

Answer

Retroactive changes are limited to correcting errors or routine accounting adjustments and must go through documented change control.

(CAM) Control Account Manager Certification Practice Test