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
What does a Schedule Performance Index (SPI) greater than 1.0 indicate?
Answer: The program is ahead of schedule — more work has been accomplished than planned
An SPI greater than 1.0 means the value of work completed exceeds the value of work planned — the program is performing ahead of the planned schedule.
The Estimate to Complete (ETC) in EVM represents:
Answer: The expected cost to finish the remaining program work from the current point
ETC is a forward-looking estimate of what it will cost to complete the remaining work, based on current performance trends.
Which financial document presents the total cost of program ownership including operations and maintenance costs after program delivery?
Answer: Life Cycle Cost Analysis
Life Cycle Cost Analysis captures all costs from initiation through disposal or ongoing operations, providing a complete view of total ownership costs.
When component project budgets are allocated from the program budget, which principle should guide allocation decisions?
Answer: Alignment of budget allocation with each component's contribution to program benefits and objectives
Budget allocation should reflect each component's strategic importance and contribution to program benefits, not arbitrary factors like duration or equal distribution.
A program sponsor requests a financial forecast update. The program manager should base this forecast primarily on:
Answer: Current cost performance trends, remaining work scope, and known risks
Accurate forecasts must incorporate current cost performance trends, realistic remaining work estimates, and known risk impacts to produce a credible financial outlook.
In PgMP, program financial closure involves which key activity?
Answer: Reconciling all financial records, releasing remaining funds, and documenting final cost performance
Financial closure requires reconciling all expenditures against the budget, formally releasing unused funds back to the organization, and documenting final cost performance for lessons learned.
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