CAM Variance Analysis & Corrective Actions

Question 1

What does a negative Schedule Variance (SV) indicate in earned value management?

Accepted Answer

Work is behind schedule

Answer

Work is ahead of schedule

Answer

Work is on schedule

Answer

Cost is over budget

Question 2

What is the correct formula for Cost Variance (CV) in earned value management?

Accepted Answer

CV = EV - AC

Answer

CV = BAC - EAC

Answer

CV = PV - AC

Answer

CV = AC - EV

Question 3

A Control Account Manager identifies a Cost Performance Index (CPI) of 0.85. What does this indicate?

Accepted Answer

For every dollar spent, only $0.85 of planned work is being accomplished

Answer

The project is 85% complete

Answer

The project will cost 85% of the original budget

Answer

The schedule is 15% behind plan

Question 4

Which type of variance metric is most reliable when performing root cause analysis on a control account's overall cost health?

Accepted Answer

Cumulative Cost Variance

Answer

Period-to-date Cost Variance

Answer

Schedule Variance for the current period

Answer

Variance at Completion estimate

Question 5

Variance Analysis Report (VAR) thresholds that trigger a written explanation are typically defined by which source?

Accepted Answer

The project contract or program management plan

Answer

DoD standard 5000.02

Answer

GAO cost estimating guidelines

Answer

ANSI/EIA-748 standard minimums

Question 6

When a CAM prepares a variance analysis narrative, which element should be addressed first?

Accepted Answer

Root cause identification

Answer

Corrective action plan

Answer

Cost impact on the estimate at completion

Answer

Schedule recovery milestones

Question 7

In earned value management, 'Undistributed Budget' (UB) is best described as budget that:

Accepted Answer

Is part of the PMB but not yet allocated to specific control accounts

Answer

Has been distributed to specific work packages

Answer

Is held in management reserves outside the PMB

Answer

Has been spent without formal authorization