CPL Budget & Resource Management Flashcards

Which budgeting approach in program management starts from zero each period, requiring all expenses to be justified rather than carrying forward prior allocations?

Answer: Zero-based budgeting

Zero-based budgeting requires every line item to be justified from scratch each budget cycle, preventing automatic carryover of prior-period spending.

A program manager notices that the cost performance index (CPI) for a major project component is 0.82. What does this indicate?

Answer: The project is over budget

A CPI below 1.0 means the program is spending more than planned for the work completed, indicating an over-budget condition.

Resource leveling in program management is primarily used to:

Answer: Resolve resource over-allocation by adjusting the schedule

Resource leveling adjusts start and finish dates to resolve resource conflicts and over-allocation, often extending the overall schedule.

In a program, which document formally authorizes the program manager to apply organizational resources to program activities?

Answer: The program charter

The program charter formally authorizes the program and grants the program manager authority to apply resources to achieve program objectives.

Which technique estimates future program costs by using a statistical relationship between historical data and other variables?

Answer: Parametric estimating

Parametric estimating uses statistical relationships (e.g., cost per unit) derived from historical data to calculate cost or duration estimates.

A program manager must allocate a shared technical specialist across three concurrent projects. What is the most appropriate resource management strategy?

Answer: Use a resource matrix to schedule the specialist's time across all three projects

A resource matrix (RACI or resource assignment matrix) helps formally schedule and communicate the shared specialist's availability across all competing projects.