Program Management Professional Program Financial Management 3

Question 1

What does a Schedule Performance Index (SPI) greater than 1.0 indicate?

Accepted Answer

The program is ahead of schedule — more work has been accomplished than planned

Answer

The program is over budget

Answer

The program is behind schedule

Answer

The program has exceeded its scope

Question 2

The Estimate to Complete (ETC) in EVM represents:

Accepted Answer

The expected cost to finish the remaining program work from the current point

Answer

The total original budget for the program

Answer

The total actual cost spent to date

Answer

The difference between planned value and actual cost

Question 3

Which financial document presents the total cost of program ownership including operations and maintenance costs after program delivery?

Accepted Answer

Life Cycle Cost Analysis

Answer

Program Charter

Answer

Benefit Realization Plan

Answer

Program Budget Baseline

Question 4

When component project budgets are allocated from the program budget, which principle should guide allocation decisions?

Accepted Answer

Alignment of budget allocation with each component's contribution to program benefits and objectives

Answer

Equal distribution regardless of component complexity

Answer

Allocating the most budget to the longest-duration project

Answer

Allowing project managers to self-determine their budget needs without oversight

Question 5

A program sponsor requests a financial forecast update. The program manager should base this forecast primarily on:

Accepted Answer

Current cost performance trends, remaining work scope, and known risks

Answer

The original approved budget without modification

Answer

The most optimistic scenario to maintain sponsor confidence

Answer

Only the component project manager inputs without independent analysis

Question 6

In PgMP, program financial closure involves which key activity?

Accepted Answer

Reconciling all financial records, releasing remaining funds, and documenting final cost performance

Answer

Starting a new program immediately after

Answer

Archiving only the budget baseline document

Answer

Allowing component projects to retain their unused budgets indefinitely