CAPM Time & Cost Management 4 — Questions and Answers
Question 1: A project manager is compressing the schedule by adding more resources to critical path activities. This technique is called:
- Fast Tracking
- Resource Leveling
- Crashing (Correct answer)
- Schedule Compression
Correct answer: Crashing
Crashing adds resources (people, equipment, overtime) to critical path activities to shorten the schedule, usually increasing cost.
Question 2: What is the formula for Schedule Performance Index (SPI)?
- PV / EV
- EV / PV (Correct answer)
- EV / AC
- AC / PV
Correct answer: EV / PV
SPI = EV / PV; an SPI greater than 1.0 indicates the project is ahead of schedule.
Question 3: In the CAPM framework, which document authorizes the project manager to apply organizational resources to project activities?
- Project Management Plan
- Project Charter (Correct answer)
- Scope Statement
- Work Breakdown Structure
Correct answer: Project Charter
The project charter formally authorizes the project and grants the project manager authority to use resources.
Question 4: A lag in project scheduling refers to:
- A delay imposed between a predecessor and successor activity (Correct answer)
- Extra time added to a schedule as a buffer
- Time saved by overlapping activities
- The difference between early and late start dates
Correct answer: A delay imposed between a predecessor and successor activity
A lag is a directed delay between activities, such as waiting for concrete to cure before adding the next floor.
Question 5: Which cost baseline document is used to measure and monitor project cost performance over time?
- Cost Management Plan
- Budget at Completion
- Cost Performance Baseline (Correct answer)
- Funding Limit Reconciliation
Correct answer: Cost Performance Baseline
The cost performance baseline is the approved time-phased budget against which actual project costs are compared.
Question 6: When using the Estimate at Completion (EAC) formula that assumes past CPI performance will continue, the formula is:
- AC + (BAC - EV)
- BAC / CPI (Correct answer)
- AC + ETC
- EV / SPI
Correct answer: BAC / CPI
EAC = BAC / CPI assumes future work will continue at the same efficiency rate as work performed to date.
Question 7: What technique breaks project work into smaller components to improve the accuracy of cost and time estimates?
- Analogous Estimating
- Parametric Estimating
- Bottom-up Estimating (Correct answer)
- Reserve Analysis
Correct answer: Bottom-up Estimating
Bottom-up estimating decomposes work into the lowest level of detail and rolls up estimates for greater accuracy.
CAPM Time & Cost Management 4
A project manager is compressing the schedule by adding more resources to critical path activities.
This technique is called: