ACAP Earned Value Management 2

Question 1

What does a negative Schedule Variance (SV = EV - PV) indicate on a program?

Accepted Answer

The program is behind schedule

Answer

The program is under budget

Answer

The program is ahead of schedule

Answer

The program has exceeded its management reserve

Question 2

What does the Budget at Completion (BAC) represent in an EVM framework?

Accepted Answer

The total authorized budget for the entire program scope

Answer

The actual cost incurred to complete all authorized work

Answer

The projected final cost based on current cost performance

Answer

The remaining funds available after management reserve drawdown

Question 3

Which Estimate at Completion (EAC) formula assumes current cost efficiency will continue for the remainder of the program?

Accepted Answer

EAC = BAC / CPI

Answer

EAC = AC + ETC

Answer

EAC = BAC - EV + AC

Answer

EAC = AC + (BAC - EV)

Question 4

What is the purpose of the To-Complete Performance Index (TCPI)?

Accepted Answer

To determine the cost efficiency required to complete remaining work within a specified budget goal

Answer

To calculate the contractor's award fee percentage

Answer

To measure technical performance against contract specifications

Answer

To calculate schedule float on the critical path

Question 5

In EVM, what is Management Reserve (MR)?

Accepted Answer

Budget withheld from the PMB and held for unplanned but in-scope work

Answer

Funds allocated to the PMB for known schedule risks

Answer

The difference between the contract ceiling price and the BAC

Answer

Contingency funds earmarked for out-of-scope contract modifications

Question 6

What does the Variance at Completion (VAC) formula calculate?

Accepted Answer

VAC = BAC - EAC

Answer

VAC = EAC - BAC

Answer

VAC = EV - AC

Answer

VAC = PV - EV

Question 7

What is the Estimate to Complete (ETC) in EVM, and how does it relate to EAC?

Accepted Answer

ETC is the expected cost to finish remaining work; EAC = AC + ETC

Answer

ETC is the cost incurred to date; EAC = ETC + BAC

Answer

ETC is the budgeted cost of remaining work; EAC = ETC - AC

Answer

ETC is the management reserve balance; EAC = BAC - ETC