CAPM Pocket Prep Concepts

Question 1

______ is interpreted as the current estimated value of the work actually accomplished. It is also is the measure of work performed expressed in terms of the budget authorized for that work.

Answer 1

Earned Value (EV)

Question 2

______ is interpreted as the current actual cost incurred for the work accomplished.

Answer 2

Actual Cost (AC)

Question 3

______ is interpreted as the current expectation of the total project cost.

Answer 3

Estimate at Completion (EAC)

Question 4

______ is the estimated value of work that is currently planned to be accomplished.

Answer 4

Planned Value (PV)

Question 5

______ are added in the aggregation process to achieve the cost baseline. The aggregation process occurs when the work package costs are rolled up to control account costs and then rolled up again to project costs.

Answer 5

Contingency reserves

Question 6

The purpose of calculating the ______ of each possible project is to compare projects in order to select the best project to initiate.

Answer 6

Net present value (NPV)

Question 7

An IRR is completed to determine what each project’s anticipated return will be.

Answer 7

Internal Rate of Return (IRR)

Question 8

The ______ determines the length of time it will take for the organization to recover its investment for each project.

Answer 8

Payback period

Question 9

The ______ is completed to compare the potential benefits of each project.

Answer 9

Cost-benefit analysis

Question 10

______ is a projection of the amount of budget deficit or surplus, expressed as the difference between the budget at completion and the estimate at completion.

Answer 10

Variance at Completion (VAC)

Question 11

______ is the expected cost to finish all the remaining project work.

Answer 11

Estimate to Complete (ETC)

Question 12

VAC can be calculated with the following formula.

Answer 12

VAC = BAC - EAC.

Positive = Under planned cost
Neutral = On planned cost
Negative = Over planned cost

Question 13

______ examines project performance over time to determine if performance is improving or deteriorating.

Answer 13

Trend analysis

Question 14

A ______ assessment considers the likelihood that a specific risk will occur.

Answer 14

Risk Probability Assessment

Question 15

A ______ assessment considers the potential effect on one or more project objectives such as schedule, cost, quality, or performance.

Answer 15

Risk Impact Assessment

Question 16

A ______ assessment evaluates the degree to which the data about individual project risks is accurate and reliable as a basis for qualitative risk analysis.

Answer 16

Risk Data Quality Assessment

Question 17

A ______ is an action to verify that all risks have been identified, plans have been created to handle risks, and that the individuals responsible for responding to the risks are prepared to take action.

Answer 17

Risk Audit

Question 18

Five alternative strategies may be considered for dealing with opportunities:

Answer 18

Escalate
Exploit
Share
Enhance
Accept

Question 19

Five alternative strategies may be considered for dealing with threats:

Answer 19

Escalate
Avoid
Transfer
Mitigate
Accept

Question 20

A ______ is an unplanned response that is created to handle unexpected problems on a project.

Answer 20

Workaround

Question 21

A ______ is an action taken to periodically review and adjust the documentation of the risk management plan and risk register.

Answer 21

Risk Reassessment

Question 22

A ______ is a review of the project’s financial resources to compare the current balance against the projected amount needed.

Answer 22

Reserve Analysis