PMT 3600V EXAM 3 2026 QUESTIONS AND
ANSWERS
1. A program manager is evaluating a new component that aligns with the strategic objective
of increasing market share but may delay the current roadmap by six months. Which
document should be consulted first to decide the course of action?
A. Program Management Plan
B. Program Charter
C. Program Governance Plan
D. Program Business Case
Answer: D
Conceptual Explanation: The Business Case provides the justification for the program and
defines the alignment with strategic objectives, making it the primary reference for high-
level trade-off decisions.
2. An EVM analysis shows a CPI of 0.85 and an SPI of 1.2. Which of the following best
describes the program’s status?
A. Ahead of schedule and under budget
B. Behind schedule and over budget
,C. Ahead of schedule and over budget
D. Behind schedule and under budget
Answer: C
Conceptual Explanation: A CPI less than 1.0 indicates cost overruns (over budget), while
an SPI greater than 1.0 indicates the work is progressing faster than planned (ahead of
schedule).
3. When estimating the cost of a program with significant uncertainty in scope, which
contract type provides the highest risk to the buyer?
A. Firm Fixed Price (FFP)
B. Fixed Price Incentive Fee (FPIF)
C. Cost Plus Award Fee (CPAF)
D. Cost Plus Fixed Fee (CPFF)
Answer: D
Conceptual Explanation: In Cost Reimbursable contracts like CPFF, the buyer bears the
risk of cost overruns because they must pay all allowable costs incurred by the seller.
4. During the benefit realization phase, a program manager identifies that a key benefit will
not be achieved as planned. What is the most appropriate next step?
A. Ignore the deviation if other benefits are exceeding expectations
B. Immediately terminate the program component responsible for that benefit
, C. Transfer the risk to the project managers
D. Update the benefits register and inform the program steering committee
Answer: D
Conceptual Explanation: The steering committee must be informed of significant changes
to expected benefits so that they can re-evaluate the program’s strategic alignment and
viability.
5. A program includes a project that has hit its Point of Total Assumption (PTA). What does
this imply for the seller?
A. The seller is now responsible for every dollar of cost overrun
B. The buyer pays all costs beyond this point to ensure delivery
C. The seller begins to share all additional costs with the buyer
D. The contract is automatically terminated due to non-performance
Answer: A
Conceptual Explanation: The PTA is the point in a Fixed Price Incentive Fee contract
where the seller bears all further costs, as the contract effectively turns into a firm-fixed-
price contract.
6. Which of the following tools is most effective for determining the root cause of a recurring
quality issue in a manufacturing program?
A. Pareto Chart
ANSWERS
1. A program manager is evaluating a new component that aligns with the strategic objective
of increasing market share but may delay the current roadmap by six months. Which
document should be consulted first to decide the course of action?
A. Program Management Plan
B. Program Charter
C. Program Governance Plan
D. Program Business Case
Answer: D
Conceptual Explanation: The Business Case provides the justification for the program and
defines the alignment with strategic objectives, making it the primary reference for high-
level trade-off decisions.
2. An EVM analysis shows a CPI of 0.85 and an SPI of 1.2. Which of the following best
describes the program’s status?
A. Ahead of schedule and under budget
B. Behind schedule and over budget
,C. Ahead of schedule and over budget
D. Behind schedule and under budget
Answer: C
Conceptual Explanation: A CPI less than 1.0 indicates cost overruns (over budget), while
an SPI greater than 1.0 indicates the work is progressing faster than planned (ahead of
schedule).
3. When estimating the cost of a program with significant uncertainty in scope, which
contract type provides the highest risk to the buyer?
A. Firm Fixed Price (FFP)
B. Fixed Price Incentive Fee (FPIF)
C. Cost Plus Award Fee (CPAF)
D. Cost Plus Fixed Fee (CPFF)
Answer: D
Conceptual Explanation: In Cost Reimbursable contracts like CPFF, the buyer bears the
risk of cost overruns because they must pay all allowable costs incurred by the seller.
4. During the benefit realization phase, a program manager identifies that a key benefit will
not be achieved as planned. What is the most appropriate next step?
A. Ignore the deviation if other benefits are exceeding expectations
B. Immediately terminate the program component responsible for that benefit
, C. Transfer the risk to the project managers
D. Update the benefits register and inform the program steering committee
Answer: D
Conceptual Explanation: The steering committee must be informed of significant changes
to expected benefits so that they can re-evaluate the program’s strategic alignment and
viability.
5. A program includes a project that has hit its Point of Total Assumption (PTA). What does
this imply for the seller?
A. The seller is now responsible for every dollar of cost overrun
B. The buyer pays all costs beyond this point to ensure delivery
C. The seller begins to share all additional costs with the buyer
D. The contract is automatically terminated due to non-performance
Answer: A
Conceptual Explanation: The PTA is the point in a Fixed Price Incentive Fee contract
where the seller bears all further costs, as the contract effectively turns into a firm-fixed-
price contract.
6. Which of the following tools is most effective for determining the root cause of a recurring
quality issue in a manufacturing program?
A. Pareto Chart
