CAPM Earned Value Management 4

Question 1

A project manager is told the project has CPI = 0.75 and SPI = 0.85. Which statement best describes the project status?

Accepted Answer

Over budget and behind schedule

Answer

CPI < 1.0 means over budget; SPI < 1.0 means behind schedule — both metrics indicate unfavorable performance.

Question 2

Which technique assigns EV credit only when a work package is 100% complete?

Accepted Answer

0/100 method

Answer

The 0/100 method gives no earned value credit until the work package is fully completed.

Question 3

The 50/50 earned value measurement method credits how much EV at the start of a work package?

Accepted Answer

50%

Answer

The 50/50 rule gives 50% EV credit when the work package begins and the remaining 50% when it is completed.

Question 4

Which EVM component is sometimes called 'Budgeted Cost of Work Scheduled' (BCWS)?

Accepted Answer

Planned Value (PV)

Answer

PV was historically called BCWS — it represents the authorized budget for scheduled work up to a given point.

Question 5

A project's EAC is $120,000 and its BAC is $100,000. What is the VAC?

Accepted Answer

−$20,000

Answer

VAC = BAC − EAC = $100,000 − $120,000 = −$20,000, indicating a projected cost overrun of $20,000.

CAPM Practice Test