CBM Project Management 2

Question 1

What does the Cost Performance Index (CPI) measure in Earned Value Management?

Accepted Answer

The ratio of Earned Value to Actual Cost incurred

Answer

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:

Accepted Answer

Define roles by indicating who is Responsible, Accountable, Consulted, and Informed for each task

Answer

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?

Accepted Answer

To document identified risks, their probability and impact, and planned response strategies

Answer

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?

Accepted Answer

The budgeted cost of work that has actually been completed

Answer

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?

Accepted Answer

A deliverable is a tangible output or result; a milestone is a significant checkpoint or event with zero duration

Answer

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.

CBM - Certified Business Manager Practice Test

CBM - Certified Business Manager Practice Test

CBM Project Management 2