Program Financial Management Flashcards
6 cards from real Program Management Professional practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Program Financial Management flashcards as text
When a program's Estimate at Completion (EAC) significantly exceeds the original Budget at Completion (BAC), the program manager should:
Answer: Analyze cost drivers, implement corrective actions, and communicate the revised forecast to stakeholders
A significant EAC overrun requires root cause analysis, corrective actions to improve cost performance, and transparent communication of the revised financial outlook.
Program financial reporting to executives should typically focus on:
Answer: High-level cost performance, forecast accuracy, and key financial decisions needed
Executive financial reporting should be concise, highlighting overall cost performance trends, forecast accuracy, and decisions that require executive attention.
In program financial management, 'funding authorization' refers to:
Answer: The formal approval of program funds aligned to program phases or milestones
Funding authorization is the formal release of program funds, often tied to phase completions or milestone achievements to maintain financial control.
Cost aggregation in program management means:
Answer: Rolling up individual project costs to create a total program cost view
Cost aggregation consolidates individual component project costs into a unified program cost baseline, enabling program-level financial monitoring.
A program manager discovers a component project is significantly over budget. What is the appropriate program-level response?
Answer: Assess the impact on the program budget baseline and benefits, then decide on corrective action or re-forecasting
Program-level response requires assessing the overrun's impact on the overall program budget and benefit delivery before determining appropriate corrective action.
Which financial technique is used to compare the financial benefits of a program against its costs to determine if it is worth pursuing?
Answer: Benefit-Cost Analysis (BCA)
Benefit-Cost Analysis quantifies and compares the total expected benefits against all program costs to support investment decision-making.
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