CAPM Earned Value Management 3

Question 1

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

Accepted Answer

The project will finish $15,000 over budget

Answer

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

Question 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?

Accepted Answer

EAC = AC + (BAC − EV)

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

TCPI

Answer

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

Question 5

TCPI based on BAC is calculated as:

Accepted Answer

(BAC − EV) / (BAC − AC)

Answer

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

CAPM Practice Test

CAPM Practice Test

CAPM Earned Value Management 3