CAPM Cost Management 3

Question 1

A project manager calculates EAC = AC + ETC. Under which assumption is this formula most appropriate?

Accepted Answer

Future work will be performed at the budgeted rate

Answer

EAC = AC + ETC (where ETC = BAC - EV) assumes future work will be completed at the originally planned (budgeted) rate.

Question 2

What does a negative Schedule Variance (SV) indicate?

Accepted Answer

The project is behind schedule

Answer

SV = EV - PV; a negative SV means earned value is less than planned value, indicating the project is behind schedule.

Question 3

Which process involves monitoring the status of the project to update costs and managing changes to the cost baseline?

Accepted Answer

Control Costs

Answer

Control Costs is the process of monitoring project status to update costs and managing changes to the cost baseline.

Question 4

A WBS element has an estimated duration of 10 days with $500/day resource cost. What estimating technique was used if this calculation was performed?

Accepted Answer

Parametric estimating

Answer

Parametric estimating uses a statistical relationship between historical data and variables (e.g., cost per unit × quantity).

Question 5

Management reserves differ from contingency reserves in that management reserves are for:

Accepted Answer

Unknown unknowns that cannot be anticipated

Answer

Management reserves address unknown unknowns—unforeseeable events—while contingency reserves cover known risks.

CAPM Practice Test