CAPM (Certified Associate in Project Management) Practice Exam

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Prepare for the CAPM (Certified Associate in Project Management) exam with our informative quiz. Test your knowledge through multiple-choice questions and detailed explanations to boost your confidence and readiness for the certification.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What does a negative Cost Variance (CV) indicate?

Costs are exactly as budgeted
Costs are overrun
Costs are below budget
The project is behind schedule

The correct answer is: Costs are overrun

A negative Cost Variance (CV) indicates that costs are overrun. In other words, the actual costs incurred are higher than what was budgeted for the project. This can be problematic as it means that the project is spending more money than planned, which can impact the overall budget and profitability of the project. Option A is incorrect because a negative CV does not mean costs are exactly as budgeted. Option C is incorrect as a negative CV does not indicate costs are below budget. Option D is incorrect as a negative CV is related to costs rather than the project schedule.