CAPM FINANCE EXAM | QUESTIONS
AND ANSWERS || LATEST EXAM
2026-2027 | 100% GRADED A+
5 process groups -ANSWER Initiating
Planning
Executing
Monitoring and Controlling
Closing
ten knowledge areas -ANSWER Integration
Scope
Time
Cost
Quality
HR
Communications
Risk
Procurement
Stakeholder management
total float formula -ANSWER total float = late finish - early finish
normal distribution -ANSWER bell curve - symmetrical distribution - 50% chance of falling
below the mean and 50% chance of falling above the mean (1sigma=68.27%. 2sigma =
95.45%. 3sigma= 99.73%)
triangular distribution -ANSWER when there are 3 possible values w/ equal probability -
distribution is a triangle. A= lowest value, B= highest value, M = most likely value
beta distribution (PERT) -ANSWER triangular distribution w/ more weight given to the
most likely estimate (can be asymmetrical). O = optimistic estimate, ML=most likely
estimate, P=pessimistic estimate
mean for a beta distribution -ANSWER mean = (O + 4ML + P)/6
standard deviation for beta distribution -ANSWER standard deviation = (P-O)/6
statistical sums -ANSWER project mean is the sum of the means of the individual tasks.
project standard deviation is the square root of the project variance
earned value management -ANSWER used to monitor the progress of a project and is an
analytical technique. uses 3 independent values - PV, AC, EV
,planned value (PV) -ANSWER the budget or the portion of the approved cost estimate
planned to be spent during a given period
actual cost (AC) -ANSWER the total of direct and indirect costs incurred in accomplishing
work during a given period
earned value (EV) -ANSWER the budget for the work accomplished in a given period
cost variance (CV) -ANSWER CV = EV - AC
schedule variance (SV) -ANSWER SV = EV - PV
cost performance index (CPI) -ANSWER CPI = EV/AC
schedule performance index (SPI) -ANSWER SPI = EV/PV
positive CV indicates, negative CV indicates -ANSWER costs are below budget, costs are
overrun
positive SV indicates, negative SV indicates -ANSWER a project is ahead of schedule, a
project is behind schedule
CPI greater than 1.0 indicates -ANSWER costs are below budget
SPI greater than 1.0 indicates -ANSWER project is ahead of schedule
CPI less than 1.0 indicates -ANSWER costs are over budget
SPI less than 1.0 indicates -ANSWER a project is behind schedule
estimate at completion (EAC) -ANSWER the amount we expect the total project to cost on
completion and as of the "data date" (time now)
new estimate technique for finding EAC -ANSWER EAC = AC/new estimate for remaining
work
new estimate is most applicable when: -ANSWER the actual performance to date shows
that the original estimates were fundamentally flawed or when they are no longer
accurate because of changes in conditions relating to the project
original estimate technique for finding EAC -ANSWER EAC = AC/(BAC - EV)
original estimate is most applicable when: -ANSWER actual variances to date are seen as
being the exception, and the expectations for the future are that the original estimates
are more reliable than the actual work effort efficiency date
,performance estimate low technique for finding EAC -ANSWER EAC = AC + (BAC -
EV)/CPI or EAC = BAC/CPI
performance estimate low formula is most applicable when: -ANSWER future variances
are projected to approximate the same level as current variances
performance estimate high technique for finding EAC -ANSWER EAC = AC + (BAC - EV) /
(CPI)(SPI)
performance estimate high formula is most applicable when: -ANSWER the project is over
budget and the schedule impacts the work remaining to be completed
BAC -ANSWER budget at completion. the total budgeted cost of all approved activities
ETC -ANSWER estimate to complete - the estimate for completing the remaining work for
a scheduled activity
ETC when past variances are considered to be atypical -ANSWER ETC = BAC - EV
ETC when prior variances are considered to be typical of future variances -ANSWER ETC
= (BAC - EV)/CPI
communications channels -ANSWER channels = (n(n-1))/2. n - number of ppl
rule of seven -ANSWER if 7 or more observations occur in one direction, or a run of 7
observations occurs either above or below the mean, they should be investigated to
determine if they have an assignable cause.
business value -ANSWER the entire value of a business - the total sum of all tangible and
intangible elements
colocation -ANSWER project team members are physically located close to one another in
order to improve communications, working relations, and productivity
constraint -ANSWER a restriction or limitation that may force a certain course of action or
inaction
enterprise environmental factors -ANSWER external or internal factors that can influence
a project's success. includes controllable factors such as the tools used in managing
project within the org, or uncontrollable factors that have to be considered by the project
manager such as market conditions or corporate culture
good practice -ANSWER a specific activity or application of a skill, tool, or technique that
has been proven to contribute positively to the execution of a process
, operations -ANSWER ongoing work performed by ppl, constrained by resources, planned,
executed, monitored, and controlled. unlike a project bc they are repetitive
organizational process assets -ANSWER any formal or informal processes, plans,
policies, procedures, guidelines, and ongoing or historical project info such as lessons
learned, measurement data, project files, and estimates vs actuals
portfolio -ANSWER a collection of programs, projects, and additional work managed
together to facilitate the attainment of strategic business goals
product life cycle -ANSWER the collection of stages that make up the life of a product.
these stages are typically introduction, growth, maturity, and retirement
program -ANSWER a group of related projects managed in a coordinated way
progressive elaboration -ANSWER the iterative process of increasing the level of detail in
a project management plan as greater amounts of information and more accurate
estimates become available
project -ANSWER work performed by ppl, constrained by resources, planned, executed,
monitored and controlled. has a definite beginning and end and creates a unique
outcome
project life cycle -ANSWER the name given to the collection of various phases that make
up a project - make the project easier to control and integrate
project management -ANSWER the ability to meet project requirements by using various
knowledge, skills, tools, and techniques to accomplish project work
project management info system -ANSWER collection of tools, methodologies,
techniques, standards, and resources used to manage a project
stakeholder -ANSWER an individual, group, or organization who may affect by, or
perceive itself to be affected by a decision, activity, or outcome of a project
standard -ANSWER a document that describes rules, guidelines, methods, processes,
and practices that can be used to enhance the chances of success
subproject -ANSWER a component of a project
program management -ANSWER the act of managing a group of related projects in a
coordinated way
project management office (PMO) -ANSWER an additional layer of organization dedicated
to helping project managers
AND ANSWERS || LATEST EXAM
2026-2027 | 100% GRADED A+
5 process groups -ANSWER Initiating
Planning
Executing
Monitoring and Controlling
Closing
ten knowledge areas -ANSWER Integration
Scope
Time
Cost
Quality
HR
Communications
Risk
Procurement
Stakeholder management
total float formula -ANSWER total float = late finish - early finish
normal distribution -ANSWER bell curve - symmetrical distribution - 50% chance of falling
below the mean and 50% chance of falling above the mean (1sigma=68.27%. 2sigma =
95.45%. 3sigma= 99.73%)
triangular distribution -ANSWER when there are 3 possible values w/ equal probability -
distribution is a triangle. A= lowest value, B= highest value, M = most likely value
beta distribution (PERT) -ANSWER triangular distribution w/ more weight given to the
most likely estimate (can be asymmetrical). O = optimistic estimate, ML=most likely
estimate, P=pessimistic estimate
mean for a beta distribution -ANSWER mean = (O + 4ML + P)/6
standard deviation for beta distribution -ANSWER standard deviation = (P-O)/6
statistical sums -ANSWER project mean is the sum of the means of the individual tasks.
project standard deviation is the square root of the project variance
earned value management -ANSWER used to monitor the progress of a project and is an
analytical technique. uses 3 independent values - PV, AC, EV
,planned value (PV) -ANSWER the budget or the portion of the approved cost estimate
planned to be spent during a given period
actual cost (AC) -ANSWER the total of direct and indirect costs incurred in accomplishing
work during a given period
earned value (EV) -ANSWER the budget for the work accomplished in a given period
cost variance (CV) -ANSWER CV = EV - AC
schedule variance (SV) -ANSWER SV = EV - PV
cost performance index (CPI) -ANSWER CPI = EV/AC
schedule performance index (SPI) -ANSWER SPI = EV/PV
positive CV indicates, negative CV indicates -ANSWER costs are below budget, costs are
overrun
positive SV indicates, negative SV indicates -ANSWER a project is ahead of schedule, a
project is behind schedule
CPI greater than 1.0 indicates -ANSWER costs are below budget
SPI greater than 1.0 indicates -ANSWER project is ahead of schedule
CPI less than 1.0 indicates -ANSWER costs are over budget
SPI less than 1.0 indicates -ANSWER a project is behind schedule
estimate at completion (EAC) -ANSWER the amount we expect the total project to cost on
completion and as of the "data date" (time now)
new estimate technique for finding EAC -ANSWER EAC = AC/new estimate for remaining
work
new estimate is most applicable when: -ANSWER the actual performance to date shows
that the original estimates were fundamentally flawed or when they are no longer
accurate because of changes in conditions relating to the project
original estimate technique for finding EAC -ANSWER EAC = AC/(BAC - EV)
original estimate is most applicable when: -ANSWER actual variances to date are seen as
being the exception, and the expectations for the future are that the original estimates
are more reliable than the actual work effort efficiency date
,performance estimate low technique for finding EAC -ANSWER EAC = AC + (BAC -
EV)/CPI or EAC = BAC/CPI
performance estimate low formula is most applicable when: -ANSWER future variances
are projected to approximate the same level as current variances
performance estimate high technique for finding EAC -ANSWER EAC = AC + (BAC - EV) /
(CPI)(SPI)
performance estimate high formula is most applicable when: -ANSWER the project is over
budget and the schedule impacts the work remaining to be completed
BAC -ANSWER budget at completion. the total budgeted cost of all approved activities
ETC -ANSWER estimate to complete - the estimate for completing the remaining work for
a scheduled activity
ETC when past variances are considered to be atypical -ANSWER ETC = BAC - EV
ETC when prior variances are considered to be typical of future variances -ANSWER ETC
= (BAC - EV)/CPI
communications channels -ANSWER channels = (n(n-1))/2. n - number of ppl
rule of seven -ANSWER if 7 or more observations occur in one direction, or a run of 7
observations occurs either above or below the mean, they should be investigated to
determine if they have an assignable cause.
business value -ANSWER the entire value of a business - the total sum of all tangible and
intangible elements
colocation -ANSWER project team members are physically located close to one another in
order to improve communications, working relations, and productivity
constraint -ANSWER a restriction or limitation that may force a certain course of action or
inaction
enterprise environmental factors -ANSWER external or internal factors that can influence
a project's success. includes controllable factors such as the tools used in managing
project within the org, or uncontrollable factors that have to be considered by the project
manager such as market conditions or corporate culture
good practice -ANSWER a specific activity or application of a skill, tool, or technique that
has been proven to contribute positively to the execution of a process
, operations -ANSWER ongoing work performed by ppl, constrained by resources, planned,
executed, monitored, and controlled. unlike a project bc they are repetitive
organizational process assets -ANSWER any formal or informal processes, plans,
policies, procedures, guidelines, and ongoing or historical project info such as lessons
learned, measurement data, project files, and estimates vs actuals
portfolio -ANSWER a collection of programs, projects, and additional work managed
together to facilitate the attainment of strategic business goals
product life cycle -ANSWER the collection of stages that make up the life of a product.
these stages are typically introduction, growth, maturity, and retirement
program -ANSWER a group of related projects managed in a coordinated way
progressive elaboration -ANSWER the iterative process of increasing the level of detail in
a project management plan as greater amounts of information and more accurate
estimates become available
project -ANSWER work performed by ppl, constrained by resources, planned, executed,
monitored and controlled. has a definite beginning and end and creates a unique
outcome
project life cycle -ANSWER the name given to the collection of various phases that make
up a project - make the project easier to control and integrate
project management -ANSWER the ability to meet project requirements by using various
knowledge, skills, tools, and techniques to accomplish project work
project management info system -ANSWER collection of tools, methodologies,
techniques, standards, and resources used to manage a project
stakeholder -ANSWER an individual, group, or organization who may affect by, or
perceive itself to be affected by a decision, activity, or outcome of a project
standard -ANSWER a document that describes rules, guidelines, methods, processes,
and practices that can be used to enhance the chances of success
subproject -ANSWER a component of a project
program management -ANSWER the act of managing a group of related projects in a
coordinated way
project management office (PMO) -ANSWER an additional layer of organization dedicated
to helping project managers
