CPSM CSPM Time, Cost & Resource Management 3 — Questions and Answers
Question 1: A project's Cost Variance (CV) is -$20,000 and its Earned Value (EV) is $80,000. What is the Actual Cost (AC)?
- $60,000
- $100,000 (Correct answer)
- $80,000
- $40,000
Correct answer: $100,000
CV = EV – AC, so AC = EV – CV = $80,000 – (–$20,000) = $100,000.
Question 2: What scheduling technique splits a task and allows another higher-priority task to use the resource temporarily?
- Resource leveling
- Preemptive scheduling (Correct answer)
- Fast tracking
- Lead and lag adjustment
Correct answer: Preemptive scheduling
Preemptive scheduling interrupts a lower-priority task so a higher-priority task can use the shared resource.
Question 3: Which document formally authorizes a project and provides the project manager with authority to apply organizational resources?
- Project management plan
- Project charter (Correct answer)
- Statement of work
- Resource management plan
Correct answer: Project charter
The project charter formally authorizes the project and grants the project manager authority to allocate resources.
Question 4: A schedule compression technique that overlaps phases or tasks that would normally be done sequentially is called:
- Crashing
- Fast tracking (Correct answer)
- Resource smoothing
- Critical chain method
Correct answer: Fast tracking
Fast tracking overlaps sequential activities to shorten the project schedule, often increasing risk.
Question 5: In the critical chain method, what is a 'project buffer' used for?
- Adding extra time to each individual task estimate
- Protecting the project end date from accumulated uncertainties (Correct answer)
- Tracking resource availability across the project
- Measuring earned value at project milestones
Correct answer: Protecting the project end date from accumulated uncertainties
A project buffer in the critical chain method absorbs uncertainty from all tasks on the critical chain to protect the final project due date.
Question 6: When should a project manager use analogous cost estimating?
- When detailed scope information is available and accuracy is critical
- Early in the project when limited information is available (Correct answer)
- After all WBS work packages have been identified
- When parametric models have been validated against the project
Correct answer: Early in the project when limited information is available
Analogous estimating uses data from similar past projects and is most useful early on when detailed information is scarce.
Question 7: A project is 50% complete with a BAC of $200,000, EV of $80,000, and AC of $100,000. What is the CPI?
- 0.75
- 0.80 (Correct answer)
- 0.85
- 1.25
Correct answer: 0.80
CPI = EV / AC = $80,000 / $100,000 = 0.80, meaning the project is getting only 80 cents of value for every dollar spent.
CPSM CSPM Time, Cost & Resource Management 3
A project's Cost Variance (CV) is -$20,000 and its Earned Value (EV) is $80,000.
What is the Actual Cost (AC)?