CCP CCP Earned Value Management 1 — Questions and Answers
Question 1: Which EVM metric represents the authorized budget assigned to scheduled work?
- Planned Value (PV) (Correct answer)
- Earned Value (EV)
- Actual Cost (AC)
- Budget at Completion (BAC)
Correct answer: Planned Value (PV)
Planned Value (PV) is the authorized budget assigned to the work scheduled to be accomplished, also called the Budgeted Cost of Work Scheduled (BCWS).
Question 2: A project has EV = $120,000 and AC = $150,000. What is the Cost Performance Index (CPI)?
- 0.80 (Correct answer)
- 1.25
- 1.20
- 0.75
Correct answer: 0.80
CPI = EV / AC = $120,000 / $150,000 = 0.80, meaning the project is getting only $0.80 of value for every $1.00 spent.
Question 3: The Schedule Variance (SV) formula in Earned Value Management is:
- EV - PV (Correct answer)
- PV - AC
- EV - AC
- BAC - EAC
Correct answer: EV - PV
Schedule Variance = EV minus PV; a negative SV means the project is behind schedule in cost terms.
Question 4: Estimate at Completion (EAC) using the formula EAC = BAC / CPI assumes:
- Future work will continue at the current cost efficiency rate (Correct answer)
- Remaining work will be completed at the original budget rate
- Cost overruns are non-recurring
- The schedule variance will be recovered
Correct answer: Future work will continue at the current cost efficiency rate
EAC = BAC / CPI assumes the cost performance experienced to date will continue for all remaining work.
Question 5: Which EVM baseline combines scope, schedule, and cost and is used to measure project performance?
- Performance Measurement Baseline (PMB) (Correct answer)
- Cost Baseline
- Schedule Baseline
- Scope Baseline
Correct answer: Performance Measurement Baseline (PMB)
The Performance Measurement Baseline (PMB) is the time-phased budget plan against which project performance is measured, integrating scope, schedule, and cost.
Question 6: A To-Complete Performance Index (TCPI) greater than 1.0 indicates:
- Future work must be performed more efficiently than past work to meet the target (Correct answer)
- The project is under budget and ahead of schedule
- The project will finish under budget at the current burn rate
- No corrective action is required
Correct answer: Future work must be performed more efficiently than past work to meet the target
TCPI > 1.0 means the remaining work must be accomplished more cost-efficiently than past work to achieve the target cost.
CCP CCP Earned Value Management 1
Which EVM metric represents the authorized budget assigned to scheduled work?