Point of Total Assumption (PTA)

Submitted by crushPMP on Fri, 04/26/2013 - 06:24
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 Can some of you recent test takers confirm if Point of Total Assumption (PTA) concept is asked in the exam? I don't find any reference to it in the PMBOK v4, while Rita explains it on Page-438, so not sure about it being "in scope" or "out of scope"? 

Are all the questions out there asking about PTA outdated and based off of PMBOK v3? Because I really have no time to remember one more concept as I still have to start taking practice tests, with very little time at hand, I would like to make the best use of it.

Thanks

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Hemant Tandon

Fri, 04/26/2013 - 21:14

I recently appeared for PMP...There was no question on PTA, however, I cannot confirm whether it is in scope or not.


Regards,


Hemant, PMP


 

siddus

Mon, 04/29/2013 - 18:49

PMBOK does mention the following about Fixed Price contracts: "Any cost increase due to adverse
performance is the responsibility of the seller, who is obligated to complete the effort." This is a very important attribute of fixed price contracts and it won't take much effort to memorize the fact that it is quite aptly called the point of total assumption - viz. it is a point after which the seller has to bear the cost.
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crushPMP

Mon, 04/29/2013 - 19:18

Thanks folks! I get the concept, but my concern was regaring the questions asking to calculate PTA - I am assuming probably those are old questions, but they use the equestion like this, which I never found in the PMBOK (Though, I have to confess that I have never actually read PMBOK, just the search functionality)


PTA = ((Ceiling Price - Target Price)/buyer's Share Ratio) + Target Cost

siddus

Tue, 04/30/2013 - 05:36

I agree, memorizing formulas is quite cumbersome. Unfortunately, we cannot say with authority whether a question of this nature would be asked on the exam. However, I suggest you memorize it like the other EV formulas. All calculation questions are easy points on the exam! Don't waste them.