CAPM Time & Cost Management 5 — Questions and Answers
Question 1: A project has total float of zero on several activities. What does this indicate about those activities?
- They are non-critical and have extra buffer time
- They are on the critical path and have no scheduling flexibility (Correct answer)
- They have been completed ahead of schedule
- They require additional resources
Correct answer: They are on the critical path and have no scheduling flexibility
Activities with zero total float are on the critical path; any delay in these activities will delay the project end date.
Question 2: Which planning tool shows the relationships between activities, including their durations and dependencies, in a network diagram format?
- Gantt Chart
- Milestone Chart
- Precedence Diagram Method (PDM) (Correct answer)
- Resource Breakdown Structure
Correct answer: Precedence Diagram Method (PDM)
PDM (also called Activity-on-Node) shows activities as nodes connected by arrows representing dependencies.
Question 3: Contingency reserves in project cost management are intended to address:
- Unknown-unknown risks not identified in the risk register
- Known risks identified and accepted in the risk register (Correct answer)
- Changes in project scope approved by the sponsor
- Inflation and market price fluctuations
Correct answer: Known risks identified and accepted in the risk register
Contingency reserves handle known risks (known unknowns) that have been identified and quantified in the risk register.
Question 4: A project's Variance at Completion (VAC) is -$20,000. What does this mean?
- The project will finish $20,000 under budget
- The project is expected to exceed its budget by $20,000 (Correct answer)
- The project has already overspent by $20,000
- The project schedule will slip by 20,000 hours
Correct answer: The project is expected to exceed its budget by $20,000
VAC = BAC - EAC; a negative VAC indicates the project is forecasted to finish over budget.
Question 5: Which process within the Project Time Management knowledge area involves determining the logical order of activities?
- Define Activities
- Estimate Activity Durations
- Sequence Activities (Correct answer)
- Develop Schedule
Correct answer: Sequence Activities
Sequence Activities identifies and documents the logical relationships among project activities to create the network diagram.
Question 6: When a project manager applies management reserves, these funds are intended for:
- Known risks identified during risk planning
- Unexpected changes to project scope or unknown risks (Correct answer)
- Overtime pay for team members
- Vendor contract contingencies
Correct answer: Unexpected changes to project scope or unknown risks
Management reserves handle unknown-unknown risks and are not part of the cost performance baseline but are in the overall project budget.
Question 7: A project manager notices that the SPI is 1.1 and the CPI is 0.9. Which statement best describes the project status?
- Ahead of schedule and under budget
- Behind schedule and over budget
- Ahead of schedule but over budget (Correct answer)
- Behind schedule but under budget
Correct answer: Ahead of schedule but over budget
SPI > 1.0 means ahead of schedule; CPI < 1.0 means over budget — the team is progressing fast but spending too much.
CAPM Time & Cost Management 5
A project has total float of zero on several activities.
What does this indicate about those activities?