CAM Project Management Fundamentals 3 — Questions and Answers
Question 1: A project's Cost Performance Index (CPI) is 0.85. What does this mean?
- The project is getting $1.18 of value for every $1 spent
- The project is only getting $0.85 of value for every $1 spent (Correct answer)
- The project is 85% complete
- The project is 15% ahead of schedule
Correct answer: The project is only getting $0.85 of value for every $1 spent
A CPI below 1.0 indicates the project is over budget, meaning only $0.85 worth of work is being accomplished for every dollar spent.
Question 2: Which type of project organizational structure gives the project manager the MOST authority?
- Functional organization
- Weak matrix organization
- Balanced matrix organization
- Projectized organization (Correct answer)
Correct answer: Projectized organization
In a projectized organization, team members report directly to the project manager who has full authority over the project and its resources.
Question 3: During project planning, a risk is identified as having high probability but low impact. How should this risk typically be prioritized?
- Highest priority — address immediately
- Medium priority — monitor and prepare mitigation (Correct answer)
- Lowest priority — accept and ignore
- Transfer the risk to the client immediately
Correct answer: Medium priority — monitor and prepare mitigation
A risk with high probability but low impact typically warrants monitoring and preparation of mitigation strategies, placing it at medium priority.
Question 4: What is the purpose of a project kickoff meeting?
- To finalize the project budget
- To align stakeholders and formally begin project execution (Correct answer)
- To conduct a post-project lessons learned review
- To close out project contracts
Correct answer: To align stakeholders and formally begin project execution
A kickoff meeting formally launches project execution, aligns all stakeholders on objectives, roles, and expectations, and builds team cohesion.
Question 5: An account manager wants to identify all tasks required to complete a project. Which tool is MOST appropriate?
- RACI matrix
- Work Breakdown Structure (WBS) (Correct answer)
- Risk register
- Communication plan
Correct answer: Work Breakdown Structure (WBS)
The Work Breakdown Structure decomposes the total project scope into smaller, manageable deliverables and work packages to ensure nothing is missed.
Question 6: Which project constraint is being managed when an account manager ensures deliverables meet client specifications?
- Scope
- Schedule
- Cost
- Quality (Correct answer)
Correct answer: Quality
Quality management ensures that project deliverables conform to requirements and meet the client's defined standards and specifications.
Question 7: A project is in the closing phase. What is a critical activity that an account manager must complete?
- Develop the project charter
- Create the risk register
- Obtain formal acceptance of deliverables (Correct answer)
- Define project scope
Correct answer: Obtain formal acceptance of deliverables
Obtaining formal client or stakeholder acceptance of deliverables is a critical closing activity that confirms all project objectives have been met.
CAM Project Management Fundamentals 3
A project's Cost Performance Index (CPI) is 0.85.
What does this mean?