CAPM Earned Value Management 2

Question 1

A project has a Budget at Completion (BAC) of $100,000 and is 60% complete. The Planned Value (PV) is $70,000 and the Actual Cost (AC) is $65,000. What is the Earned Value (EV)?

Accepted Answer

$60,000

Answer

EV = BAC × % complete = $100,000 × 0.60 = $60,000.

Question 2

Which EVM metric directly measures the efficiency of the budget used for the work performed?

Accepted Answer

Cost Performance Index (CPI)

Answer

CPI = EV / AC measures how efficiently the budget is being spent relative to the work accomplished.

Question 3

A project has EV = $40,000 and PV = $50,000. What does this indicate?

Accepted Answer

The project is behind schedule

Answer

SV = EV − PV = $40,000 − $50,000 = −$10,000, indicating the project is behind schedule.

Question 4

What does an SPI of 1.2 indicate about a project?

Accepted Answer

The project is 20% ahead of schedule

Answer

SPI = EV / PV; an SPI > 1.0 means the project is progressing faster than planned.

Question 5

The Estimate to Complete (ETC) represents which of the following?

Accepted Answer

Expected cost to finish remaining project work

Answer

ETC is the expected cost needed to complete all remaining project work from the current point forward.

CAPM Practice Test

CAPM Practice Test

CAPM Earned Value Management 2