PMT 3600V COMPREHENSIVE EXAM
REVIEW QUESTIONS AND ANSWERS
WITH VERIFIED SOLUTIONS 2026/2027
UPDATE. JUST RELEASED
1. If the Budgeted Cost of Work Performed (BCWP) is $450,000 and the Budgeted Cost of
Work Scheduled (BCWS) is $500,000, what is the Schedule Performance Index (SPI)?
A. 1.05
B. 1.11
C. -$50,000
D. 0.90
Answer: D
Conceptual Explanation: SPI is calculated as BCWP divided by BCWS (450,,000
= 0.90). An SPI less than 1.0 indicates the project is behind schedule.
2. Which cost estimating method is typically used during the earliest stages of an acquisition
program when little technical detail is available?
A. Engineering Bottom-Up
B. Actual Costs
C. Parametric
,D. Analogy
Answer: D
Conceptual Explanation: The Analogy method compares a new system with a similar
legacy system and is used early in the lifecycle when technical data is sparse.
3. In the context of Earned Value Management, what does ‘Management Reserve’ (MR)
represent?
A. Budget for scope changes not yet identified
B. Budget for risks identified in the Risk Register
C. Budget held for unknown unknowns within the existing scope
D. Profit for the contractor
Answer: C
Conceptual Explanation: Management Reserve is budget withheld for management
control purposes for unforeseen work that is within the scope of the contract (unknown
unknowns).
4. A project has a BAC of $1,000,000 and a cumulative CPI of 0.80. Assuming future work will
be performed at the current efficiency rate, what is the Estimate at Completion (EAC)?
A. $800,000
B. $1,250,000
C. $1,000,000
, D. $1,200,000
Answer: B
Conceptual Explanation: EAC = BAC / CPI. In this case, $1,000,.80 = $1,250,000.
5. Which contract type places the maximum risk and full responsibility for all costs and
resulting profit or loss on the contractor?
A. Firm Fixed Price (FFP)
B. Fixed Price Incentive Firm (FPIF)
C. Cost Plus Fixed Fee (CPFF)
D. Cost Plus Award Fee (CPAF)
Answer: A
Conceptual Explanation: In a Firm Fixed Price (FFP) contract, the price is not subject to
adjustment, placing all cost risk on the contractor.
6. What is the primary purpose of an Integrated Baseline Review (IBR)?
A. To achieve a mutual understanding of the performance measurement baseline and risks
B. To finalize the contract price
C. To audit the contractor’s accounting system
D. To penalize the contractor for schedule delays
Answer: A
REVIEW QUESTIONS AND ANSWERS
WITH VERIFIED SOLUTIONS 2026/2027
UPDATE. JUST RELEASED
1. If the Budgeted Cost of Work Performed (BCWP) is $450,000 and the Budgeted Cost of
Work Scheduled (BCWS) is $500,000, what is the Schedule Performance Index (SPI)?
A. 1.05
B. 1.11
C. -$50,000
D. 0.90
Answer: D
Conceptual Explanation: SPI is calculated as BCWP divided by BCWS (450,,000
= 0.90). An SPI less than 1.0 indicates the project is behind schedule.
2. Which cost estimating method is typically used during the earliest stages of an acquisition
program when little technical detail is available?
A. Engineering Bottom-Up
B. Actual Costs
C. Parametric
,D. Analogy
Answer: D
Conceptual Explanation: The Analogy method compares a new system with a similar
legacy system and is used early in the lifecycle when technical data is sparse.
3. In the context of Earned Value Management, what does ‘Management Reserve’ (MR)
represent?
A. Budget for scope changes not yet identified
B. Budget for risks identified in the Risk Register
C. Budget held for unknown unknowns within the existing scope
D. Profit for the contractor
Answer: C
Conceptual Explanation: Management Reserve is budget withheld for management
control purposes for unforeseen work that is within the scope of the contract (unknown
unknowns).
4. A project has a BAC of $1,000,000 and a cumulative CPI of 0.80. Assuming future work will
be performed at the current efficiency rate, what is the Estimate at Completion (EAC)?
A. $800,000
B. $1,250,000
C. $1,000,000
, D. $1,200,000
Answer: B
Conceptual Explanation: EAC = BAC / CPI. In this case, $1,000,.80 = $1,250,000.
5. Which contract type places the maximum risk and full responsibility for all costs and
resulting profit or loss on the contractor?
A. Firm Fixed Price (FFP)
B. Fixed Price Incentive Firm (FPIF)
C. Cost Plus Fixed Fee (CPFF)
D. Cost Plus Award Fee (CPAF)
Answer: A
Conceptual Explanation: In a Firm Fixed Price (FFP) contract, the price is not subject to
adjustment, placing all cost risk on the contractor.
6. What is the primary purpose of an Integrated Baseline Review (IBR)?
A. To achieve a mutual understanding of the performance measurement baseline and risks
B. To finalize the contract price
C. To audit the contractor’s accounting system
D. To penalize the contractor for schedule delays
Answer: A
