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Earned Value Management Flashcards

7 cards from real CAPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. A project manager calculates VAC = −$15,000. What does this Variance at Completion indicate?

    Answer: The project will finish $15,000 over budget

    VAC = BAC − EAC; a negative VAC means the project is forecasted to exceed its budget.

  2. When calculating EAC under the assumption that the remaining work will be completed at the budgeted rate (ignoring current CPI), which formula is used?

    Answer: EAC = AC + (BAC − EV)

    EAC = AC + (BAC − EV) assumes the remaining work proceeds at the original planned rate regardless of past performance.

  3. A project reports CV = +$8,000. What does this Cost Variance indicate?

    Answer: The project has earned $8,000 more value than spent

    CV = EV − AC; a positive CV means the project has delivered more value than the money spent.

  4. Which EVM metric is used to evaluate the cost efficiency needed on remaining work to meet the original BAC?

    Answer: TCPI

    TCPI (To-Complete Performance Index) measures the cost efficiency required on remaining work to achieve a specific target (BAC or EAC).

  5. TCPI based on BAC is calculated as:

    Answer: (BAC − EV) / (BAC − AC)

    TCPI = (BAC − EV) / (BAC − AC) — remaining work divided by remaining budget.

  6. A project has PV = $80,000, EV = $72,000, and AC = $78,000. What is the SPI?

    Answer: 0.92

    SPI = EV / PV = $72,000 / $80,000 = 0.90, indicating the project is progressing at 90% of the planned rate.

  7. In EVM, the term 'Work Package' refers to:

    Answer: The lowest level of the WBS where cost and schedule can be monitored

    Work packages are the lowest WBS level where time and cost are estimated, tracked, and controlled in EVM.