CPSM CSPM Time, Cost & Resource Management 4 — Questions and Answers
Question 1: Which type of project cost is directly tied to the amount of work performed, such as hourly labor costs?
- Fixed costs
- Variable costs (Correct answer)
- Sunk costs
- Indirect costs
Correct answer: Variable costs
Variable costs change in proportion to the work performed, such as labor charged by the hour.
Question 2: A project manager wants to shorten the schedule by adding resources to critical path tasks. This technique is called:
- Fast tracking
- Crashing (Correct answer)
- Resource smoothing
- Schedule compression baseline
Correct answer: Crashing
Crashing adds resources (people, equipment, overtime) to critical path tasks to shorten duration, typically at increased cost.
Question 3: What term describes the costs already spent on a project that cannot be recovered regardless of future decisions?
- Opportunity costs
- Variable costs
- Sunk costs (Correct answer)
- Indirect costs
Correct answer: Sunk costs
Sunk costs are past expenditures that are irrelevant to future decision-making because they cannot be recovered.
Question 4: A Responsibility Assignment Matrix (RAM) maps project roles to work packages. What does a RACI chart specifically track?
- Risk, Assumption, Constraint, Issue for each task
- Responsible, Accountable, Consulted, Informed for each task (Correct answer)
- Resources, Activities, Costs, Inputs for each deliverable
- Roles, Authorities, Commitments, Interfaces for team members
Correct answer: Responsible, Accountable, Consulted, Informed for each task
A RACI chart clarifies who is Responsible, Accountable, Consulted, and Informed for each project task or deliverable.
Question 5: What is the primary difference between 'free float' and 'total float' in schedule management?
- Free float is the delay allowed before impacting a successor; total float is the delay allowed before impacting the project end (Correct answer)
- Free float applies to the whole project; total float applies to individual tasks
- Free float is used in critical chain; total float is used in CPM
- Free float includes resource constraints; total float does not
Correct answer: Free float is the delay allowed before impacting a successor; total float is the delay allowed before impacting the project end
Free float is how long a task can be delayed without delaying its immediate successor, while total float is how long it can be delayed without delaying the project end date.
Question 6: A project manager calculates a To-Complete Performance Index (TCPI) greater than 1.2. What does this suggest?
- The project is performing well and will finish under budget
- The required future cost efficiency is unrealistically high, indicating the budget may need revision (Correct answer)
- The project has surplus funds and can add scope
- The project will finish ahead of schedule
Correct answer: The required future cost efficiency is unrealistically high, indicating the budget may need revision
A TCPI above 1.2 means remaining work must be completed at a significantly higher efficiency than historical performance, signaling the need to revisit the budget.
Question 7: Which scheduling method determines the longest path through the project network to identify the minimum project duration?
- Program Evaluation and Review Technique (PERT)
- Critical Path Method (CPM) (Correct answer)
- Critical Chain Method (CCM)
- Precedence Diagramming Method (PDM)
Correct answer: Critical Path Method (CPM)
The Critical Path Method (CPM) identifies the longest sequence of dependent activities, which determines the shortest possible project completion time.
CPSM CSPM Time, Cost & Resource Management 4
Which type of project cost is directly tied to the amount of work performed, such as hourly labor costs?