PMT 3600V FINAL EXAM PREP
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 2026/2027
UPDATE. JUST RELEASED
1. A project has a Budget at Completion (BAC) of $1,000,000 and an Earned Value (EV) of
$400,000. If the Actual Cost (AC) is $500,000, what is the To-Complete Performance Index
(TCPI) based on the BAC?
A. 0.80
B. 1.20
C. 1.25
D. 1.00
Answer: B
Conceptual Explanation: TCPI (BAC) = (BAC - EV) / (BAC - AC). So, (1,000,000 - 400,000)
/ (1,000,000 - 500,000) = 600,,000 = 1.2.
2. Which technical review is conducted to ensure the system can proceed into fabrication,
assembly, integration, and testing within cost and schedule constraints?
A. Critical Design Review (CDR)
B. Preliminary Design Review (PDR)
,C. System Requirements Review (SRR)
D. Production Readiness Review (PRR)
Answer: A
Conceptual Explanation: The Critical Design Review (CDR) determines if the system
design is appropriately mature to proceed into full-scale fabrication and assembly.
3. In an FPIF (Fixed Price Incentive Firm) contract, what happens if the actual cost exceeds the
price ceiling?
A. The government pays the difference.
B. The contractor is paid the target profit only.
C. The price is renegotiated to a Cost Plus format.
D. The contractor bears all costs above the ceiling price.
Answer: D
Conceptual Explanation: In Fixed Price Incentive Firm contracts, the price ceiling is the
maximum amount the government will pay; all costs beyond that are the contractor’s
responsibility.
4. Which risk handling strategy involves changing the project plan to eliminate the threat
entirely?
A. Mitigation
B. Acceptance
, C. Transfer
D. Avoidance
Answer: D
Conceptual Explanation: Risk avoidance involves changing the project management plan
to eliminate the threat posed by an adverse risk.
5. What is the primary difference between Management Reserve (MR) and Contingency
Reserve?
A. MR is for ‘known unknowns’, Contingency is for ‘unknown unknowns’.
B. Contingency Reserve is held by the customer, MR is held by the PM.
C. MR is part of the Performance Measurement Baseline (PMB).
D. MR is for ‘unknown unknowns’, Contingency is for ‘known unknowns’.
Answer: D
Conceptual Explanation: Contingency reserve is for identified risks (known unknowns)
and is part of the PMB. Management Reserve is for unidentified risks (unknown unknowns)
and is not part of the PMB.
6. If a task on the critical path is delayed by 3 days, what is the effect on the overall project
completion date?
A. The project will be delayed by 3 days.
B. No effect if there is free float.
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 2026/2027
UPDATE. JUST RELEASED
1. A project has a Budget at Completion (BAC) of $1,000,000 and an Earned Value (EV) of
$400,000. If the Actual Cost (AC) is $500,000, what is the To-Complete Performance Index
(TCPI) based on the BAC?
A. 0.80
B. 1.20
C. 1.25
D. 1.00
Answer: B
Conceptual Explanation: TCPI (BAC) = (BAC - EV) / (BAC - AC). So, (1,000,000 - 400,000)
/ (1,000,000 - 500,000) = 600,,000 = 1.2.
2. Which technical review is conducted to ensure the system can proceed into fabrication,
assembly, integration, and testing within cost and schedule constraints?
A. Critical Design Review (CDR)
B. Preliminary Design Review (PDR)
,C. System Requirements Review (SRR)
D. Production Readiness Review (PRR)
Answer: A
Conceptual Explanation: The Critical Design Review (CDR) determines if the system
design is appropriately mature to proceed into full-scale fabrication and assembly.
3. In an FPIF (Fixed Price Incentive Firm) contract, what happens if the actual cost exceeds the
price ceiling?
A. The government pays the difference.
B. The contractor is paid the target profit only.
C. The price is renegotiated to a Cost Plus format.
D. The contractor bears all costs above the ceiling price.
Answer: D
Conceptual Explanation: In Fixed Price Incentive Firm contracts, the price ceiling is the
maximum amount the government will pay; all costs beyond that are the contractor’s
responsibility.
4. Which risk handling strategy involves changing the project plan to eliminate the threat
entirely?
A. Mitigation
B. Acceptance
, C. Transfer
D. Avoidance
Answer: D
Conceptual Explanation: Risk avoidance involves changing the project management plan
to eliminate the threat posed by an adverse risk.
5. What is the primary difference between Management Reserve (MR) and Contingency
Reserve?
A. MR is for ‘known unknowns’, Contingency is for ‘unknown unknowns’.
B. Contingency Reserve is held by the customer, MR is held by the PM.
C. MR is part of the Performance Measurement Baseline (PMB).
D. MR is for ‘unknown unknowns’, Contingency is for ‘known unknowns’.
Answer: D
Conceptual Explanation: Contingency reserve is for identified risks (known unknowns)
and is part of the PMB. Management Reserve is for unidentified risks (unknown unknowns)
and is not part of the PMB.
6. If a task on the critical path is delayed by 3 days, what is the effect on the overall project
completion date?
A. The project will be delayed by 3 days.
B. No effect if there is free float.
