CAPM CAPM Cost & Schedule Management 2 — Questions and Answers
Question 1: Fast tracking as a schedule compression technique involves:
- Adding more resources to critical path activities
- Performing activities in parallel that were originally planned in sequence (Correct answer)
- Removing scope to shorten the schedule
- Using a faster, more experienced team on the project
Correct answer: Performing activities in parallel that were originally planned in sequence
Fast tracking overlaps activities that would normally be done sequentially, reducing overall duration but increasing risk of rework.
Question 2: What does the Estimate at Completion (EAC) represent in Earned Value Management?
- The original approved project budget
- The expected total cost of the project when it is finished (Correct answer)
- The amount of money spent to date
- The difference between the budget and actual costs
Correct answer: The expected total cost of the project when it is finished
EAC is the expected total cost of completing all project work, calculated by combining actual costs to date with an estimate for the remaining work.
Question 3: In project scheduling, what is the difference between a mandatory dependency and a discretionary dependency?
- Mandatory dependencies involve external vendors; discretionary involve internal teams
- Mandatory dependencies are legally or contractually required; discretionary are preferred sequencing choices (Correct answer)
- Mandatory dependencies are on the critical path; discretionary are not
- Mandatory dependencies cannot be changed; discretionary can be changed by the sponsor
Correct answer: Mandatory dependencies are legally or contractually required; discretionary are preferred sequencing choices
Mandatory dependencies are inherent in the nature of work or required by contract/law (hard logic), while discretionary dependencies reflect preferred or best-practice sequencing (soft logic).
Question 4: Which type of cost is incurred regardless of project output, such as executive salaries and facility leases?
- Variable cost
- Direct cost
- Fixed cost (Correct answer)
- Sunk cost
Correct answer: Fixed cost
Fixed costs do not change based on project output or work volume, such as rent, salaries of permanent staff, or equipment lease fees.
Question 5: What is a contingency reserve in project cost management?
- Budget set aside by senior management for unknown unknowns
- Budget allocated to handle identified risks with known probability and impact (Correct answer)
- A fixed percentage added to all cost estimates automatically
- The difference between the budget baseline and the cost baseline
Correct answer: Budget allocated to handle identified risks with known probability and impact
Contingency reserves are budget amounts added to the cost estimate to account for identified risks (known unknowns) and are part of the cost baseline.
Question 6: Which scheduling output represents the planned dates for starting and finishing project activities?
- Work breakdown structure
- Project schedule baseline (Correct answer)
- Activity list
- Responsibility assignment matrix
Correct answer: Project schedule baseline
The project schedule baseline is the approved version of the schedule model, showing planned start and finish dates for activities, used to measure schedule performance.
CAPM CAPM Cost & Schedule Management 2
Fast tracking as a schedule compression technique involves: