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

A negative SV (EV < PV) means less work has been earned than was planned, indicating the program is behind schedule.

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

BAC is the total authorized budget for all work in the program — the sum of all budgets allocated in the PMB plus management reserve.

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 = BAC / CPI projects final cost assuming the cumulative CPI experienced to date will persist throughout the remaining work.

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

TCPI = (BAC - EV) / (BAC - AC) or (EAC - AC); it shows the future cost efficiency needed to meet the BAC or EAC goal.

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

Management Reserve is budget held outside the PMB by program management for unknown, unplanned — but in-scope — risks.

ACAP - Army Cost Analysis Position Practice Test