CAM Variance Analysis & Corrective Actions 1

Question 1

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

Accepted Answer

Work is behind schedule

Answer

A negative SV (EV - PV < 0) means less work was accomplished than planned, indicating the project is behind schedule.

Question 2

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

Accepted Answer

CV = EV - AC

Answer

Cost Variance equals Earned Value minus Actual Cost; a positive CV means you spent less than budgeted for work actually performed.

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

A CPI of 0.85 means the project is getting only $0.85 worth of work for every $1.00 spent, indicating a cost overrun situation.

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

Cumulative CV smooths out period-to-period fluctuations and reflects the true overall cost health of the control account, making it the most reliable root cause signal.

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

Variance thresholds for VAR reporting are contractually or procedurally defined and vary by project; there is no universal fixed percentage mandated across all programs.

(CAM) Control Account Manager Certification Practice Test

(CAM) Control Account Manager Certification Practice Test

CAM Variance Analysis & Corrective Actions 1