CAPM Time & Cost Management 3

Question 1

A project has a Planned Value (PV) of $50,000, Earned Value (EV) of $45,000, and Actual Cost (AC) of $42,000. What is the Cost Variance (CV)?

Accepted Answer

$3,000

Answer

CV = EV - AC = $45,000 - $42,000 = $3,000, indicating the project is under budget.

Question 2

What is the purpose of a resource histogram in project time management?

Accepted Answer

To display resource usage over time periods

Answer

A resource histogram is a bar chart that shows the amount of time a resource is scheduled to work over a series of time periods.

Question 3

What does 'free float' (free slack) mean in schedule network analysis?

Accepted Answer

The time an activity can be delayed without delaying the early start of its successor

Answer

Free float is the amount of time an activity can be delayed without impacting the earliest start of any successor activity.

Question 4

Which process involves identifying the sequence of activities that represents the longest path through the schedule network?

Accepted Answer

Develop Schedule

Answer

Develop Schedule integrates all schedule inputs including the critical path analysis to produce the project schedule.

Question 5

A project manager uses parametric estimating. The historical rate is $500 per unit and the project requires 200 units. What is the cost estimate?

Accepted Answer

$100,000

Answer

Parametric estimating multiplies the unit rate by the quantity: $500 × 200 = $100,000.

CAPM Practice Test