CBM Project Management 2 — Questions and Answers
Question 1: What does the Cost Performance Index (CPI) measure in Earned Value Management?
- The ratio of Earned Value to Actual Cost incurred (Correct answer)
- The ratio of Actual Cost to the original budget
- The total cost variance across all project phases
- The forecasted total cost at project completion
Correct answer: The ratio of Earned Value to Actual Cost incurred
CPI = EV / AC (Earned Value divided by Actual Cost); a CPI greater than 1.0 indicates the project is under budget, while less than 1.0 means it is over budget.
Question 2: A RACI matrix is used in project management to:
- Identify and assess project risks by probability and impact
- Define roles by indicating who is Responsible, Accountable, Consulted, and Informed for each task (Correct answer)
- Track schedule performance against the project baseline
- Document all approved project change requests
Correct answer: Define roles by indicating who is Responsible, Accountable, Consulted, and Informed for each task
A RACI matrix assigns four types of involvement — Responsible, Accountable, Consulted, and Informed — to team members for each project task or deliverable, clarifying ownership.
Question 3: What is the purpose of a risk register in project management?
- To track the project's financial transactions and expenditures
- To document identified risks, their probability and impact, and planned response strategies (Correct answer)
- To record all formal project change requests submitted by stakeholders
- To list all project stakeholders and their communication preferences
Correct answer: To document identified risks, their probability and impact, and planned response strategies
A risk register records identified project risks, their likelihood and impact ratings, risk owners, and planned mitigation or contingency responses for ongoing monitoring.
Question 4: What is Earned Value (EV) in project management?
- The total amount of money actually spent on the project to date
- The budgeted cost of work that has actually been completed (Correct answer)
- The difference between planned budget and actual costs incurred
- The projected total cost of the project at completion
Correct answer: The budgeted cost of work that has actually been completed
Earned Value (EV), also called Budgeted Cost of Work Performed (BCWP), represents the planned budget value associated with the work that has actually been completed.
Question 5: What is the key difference between a project deliverable and a project milestone?
- Deliverables are internal documents; milestones are external products delivered to customers
- A deliverable is a tangible output or result; a milestone is a significant checkpoint or event with zero duration (Correct answer)
- Milestones require dedicated budget; deliverables do not have separate budget allocations
- Deliverables are measured in time elapsed; milestones are measured in cost expended
Correct answer: A deliverable is a tangible output or result; a milestone is a significant checkpoint or event with zero duration
A deliverable is a specific, tangible output produced by the project (e.g., a report or software module), while a milestone marks a significant point in the schedule, such as phase completion, with no duration.
Question 6: What is the primary purpose of a project change control process?
- To track employee performance reviews during project execution
- To formally evaluate, approve, and document requested changes to scope, schedule, or budget before implementation (Correct answer)
- To automatically replace the project manager when performance issues arise
- To extend project deadlines without stakeholder notification when necessary
Correct answer: To formally evaluate, approve, and document requested changes to scope, schedule, or budget before implementation
Change control is a formal process for reviewing, approving, and managing requested modifications to the project baseline (scope, schedule, cost) to prevent uncontrolled changes and scope creep.
Question 7: Resource leveling in project management refers to:
- Equalizing salary compensation among project team members
- Adjusting the project schedule to resolve resource over-allocations or conflicts (Correct answer)
- Distributing the project budget equally across all work packages
- Assigning an identical number of tasks to each team member
Correct answer: Adjusting the project schedule to resolve resource over-allocations or conflicts
Resource leveling adjusts activity start and end dates to balance resource demand against available supply, which may extend the schedule but resolves situations where resources are over-allocated.
CBM Project Management 2
What does the Cost Performance Index (CPI) measure in Earned Value Management?