PMT 3600V EXAM 3 - ADVANCED
PROGRAM MANAGEMENT QUESTIONS
AND ANSWERS WITH VERIFIED
SOLUTIONS 2026/2027 UPDATE. JUST
RELEASED
1. A Program Manager (PM) is evaluating a project with a Budget at Completion (BAC) of
$1,000,000. Currently, the Earned Value (EV) is $400,000, and the Actual Cost (AC) is
$500,000. What is the To Complete Performance Index (TCPI) based on the original BAC?
A. 1.20
B. 0.80
C. 1.00
D. 1.25
Answer: A
Conceptual Explanation: TCPI (BAC) = (BAC - EV) / (BAC - AC). (1,000,000 - 400,000) /
(1,000,000 - 500,000) = 600,,000 = 1.2. This means the program must perform at
120% efficiency to finish on budget.
2. In a Fixed Price Incentive Firm (FPIF) contract, the Point of Total Assumption (PTA) is the
point where:
A. The government assumes all risk for further cost increases.
,B. The contractor assumes all risk for further cost increases and the contract acts like a
Firm Fixed Price contract.
C. The profit is maximized regardless of cost.
D. The ceiling price and target cost are equal.
Answer: B
Conceptual Explanation: The PTA is the point where the cost overrun becomes the sole
responsibility of the contractor because the ceiling price has been reached; effectively, the
share ratio becomes 0/100.
3. Which of the following best describes the purpose of a Configuration Steering Board (CSB)?
A. To manage the technical baseline during the Operations and Support phase.
B. To assign personnel to the Systems Engineering team.
C. To conduct the final Functional Configuration Audit (FCA).
D. To review and potentially approve requirement changes that could impact cost or
schedule.
Answer: D
Conceptual Explanation: CSBs are mandated to prevent ‘scope creep’ by reviewing and
approving changes to requirements that have the potential to significantly increase costs or
delay the schedule.
, 4. Under the Clinger-Cohen Act, which role is responsible for ensuring that information
technology systems are integrated and interoperable?
A. Program Manager (PM)
B. Contracting Officer (KO)
C. Chief Information Officer (CIO)
D. Milestone Decision Authority (MDA)
Answer: C
Conceptual Explanation: The Clinger-Cohen Act established the role of the CIO to provide
strategic leadership for IT management, ensuring systems are integrated, interoperable,
and cost-effective.
5. A program has a Cost Performance Index (CPI) of 0.75 and a Schedule Performance Index
(SPI) of 0.85. What is the most likely status of this program?
A. Ahead of schedule and under budget.
B. Behind schedule and over budget.
C. Behind schedule and under budget.
D. Ahead of schedule and over budget.
Answer: B
Conceptual Explanation: A CPI less than 1.0 indicates a cost overrun (over budget), and
an SPI less than 1.0 indicates the project is behind schedule.
PROGRAM MANAGEMENT QUESTIONS
AND ANSWERS WITH VERIFIED
SOLUTIONS 2026/2027 UPDATE. JUST
RELEASED
1. A Program Manager (PM) is evaluating a project with a Budget at Completion (BAC) of
$1,000,000. Currently, the Earned Value (EV) is $400,000, and the Actual Cost (AC) is
$500,000. What is the To Complete Performance Index (TCPI) based on the original BAC?
A. 1.20
B. 0.80
C. 1.00
D. 1.25
Answer: A
Conceptual Explanation: TCPI (BAC) = (BAC - EV) / (BAC - AC). (1,000,000 - 400,000) /
(1,000,000 - 500,000) = 600,,000 = 1.2. This means the program must perform at
120% efficiency to finish on budget.
2. In a Fixed Price Incentive Firm (FPIF) contract, the Point of Total Assumption (PTA) is the
point where:
A. The government assumes all risk for further cost increases.
,B. The contractor assumes all risk for further cost increases and the contract acts like a
Firm Fixed Price contract.
C. The profit is maximized regardless of cost.
D. The ceiling price and target cost are equal.
Answer: B
Conceptual Explanation: The PTA is the point where the cost overrun becomes the sole
responsibility of the contractor because the ceiling price has been reached; effectively, the
share ratio becomes 0/100.
3. Which of the following best describes the purpose of a Configuration Steering Board (CSB)?
A. To manage the technical baseline during the Operations and Support phase.
B. To assign personnel to the Systems Engineering team.
C. To conduct the final Functional Configuration Audit (FCA).
D. To review and potentially approve requirement changes that could impact cost or
schedule.
Answer: D
Conceptual Explanation: CSBs are mandated to prevent ‘scope creep’ by reviewing and
approving changes to requirements that have the potential to significantly increase costs or
delay the schedule.
, 4. Under the Clinger-Cohen Act, which role is responsible for ensuring that information
technology systems are integrated and interoperable?
A. Program Manager (PM)
B. Contracting Officer (KO)
C. Chief Information Officer (CIO)
D. Milestone Decision Authority (MDA)
Answer: C
Conceptual Explanation: The Clinger-Cohen Act established the role of the CIO to provide
strategic leadership for IT management, ensuring systems are integrated, interoperable,
and cost-effective.
5. A program has a Cost Performance Index (CPI) of 0.75 and a Schedule Performance Index
(SPI) of 0.85. What is the most likely status of this program?
A. Ahead of schedule and under budget.
B. Behind schedule and over budget.
C. Behind schedule and under budget.
D. Ahead of schedule and over budget.
Answer: B
Conceptual Explanation: A CPI less than 1.0 indicates a cost overrun (over budget), and
an SPI less than 1.0 indicates the project is behind schedule.
