CPL CPL Budget & Resource Management 1 — Questions and Answers
Question 1: Which budgeting approach in program management starts from zero each period, requiring all expenses to be justified rather than carrying forward prior allocations?
- Incremental budgeting
- Zero-based budgeting (Correct answer)
- Activity-based budgeting
- Rolling wave budgeting
Correct 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.
Question 2: A program manager notices that the cost performance index (CPI) for a major project component is 0.82. What does this indicate?
- The project is under budget
- The project is on budget
- The project is over budget (Correct answer)
- The project has no cost variance
Correct 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.
Question 3: Resource leveling in program management is primarily used to:
- Increase the total program budget
- Resolve resource over-allocation by adjusting the schedule (Correct answer)
- Reduce the number of team members required
- Eliminate all schedule float
Correct 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.
Question 4: In a program, which document formally authorizes the program manager to apply organizational resources to program activities?
- The program scope statement
- The program charter (Correct answer)
- The benefits realization plan
- The resource management plan
Correct answer: The program charter
The program charter formally authorizes the program and grants the program manager authority to apply resources to achieve program objectives.
Question 5: Which technique estimates future program costs by using a statistical relationship between historical data and other variables?
- Analogous estimating
- Bottom-up estimating
- Parametric estimating (Correct answer)
- Three-point estimating
Correct answer: Parametric estimating
Parametric estimating uses statistical relationships (e.g., cost per unit) derived from historical data to calculate cost or duration estimates.
Question 6: A program manager must allocate a shared technical specialist across three concurrent projects. What is the most appropriate resource management strategy?
- Assign the specialist full-time to the highest-priority project only
- Use a resource matrix to schedule the specialist's time across all three projects (Correct answer)
- Hire a contractor to replace the specialist on the lower-priority projects
- Delay all three projects until the specialist is fully available
Correct 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.
CPL CPL Budget & Resource Management 1
Which budgeting approach in program management starts from zero each period, requiring all expenses to be justified rather than carrying forward prior allocations?