Practice Test Geeks(CCT) Certified Cost Technician Practice Test
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Earned Value Management Flashcards

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

Read the first 7 Earned Value Management flashcards as text

  1. The Performance Measurement Baseline (PMB) in EVM is best described as:

    Answer: The time-phased budget plan against which project performance is measured

    The PMB is the approved, time-phased cost plan (scope + schedule + budget integrated) used as the baseline reference for measuring project performance.

  2. Which EVM metric best indicates overall project health by combining both cost and schedule efficiency?

    Answer: Cost Performance Index (CPI)

    CPI is the most widely used single indicator of project health because it directly measures cost efficiency of completed work and correlates strongly with final outcomes.

  3. If BAC = $500,000 and EAC = $550,000, what is the Variance at Completion (VAC)?

    Answer: -$50,000

    VAC = BAC - EAC = $500,000 - $550,000 = -$50,000, meaning the project is forecast to exceed its original budget by $50,000.

  4. In EVM, what does percent complete (PC) most accurately represent?

    Answer: The ratio of EV to BAC expressed as a percentage

    Percent complete = (EV / BAC) × 100; it measures how much of the authorized budget has been earned through completed work.

  5. Which EAC formula is appropriate when the initial estimate was fundamentally flawed and a new bottom-up re-estimate is required?

    Answer: EAC = AC + new ETC

    When the original estimate is no longer valid, EAC = AC + new ETC uses the actual cost to date plus a fresh bottom-up estimate for remaining work.

  6. In Earned Value Management, what is the significance of the Control Account?

    Answer: It is the management control point where scope, schedule, and cost are integrated and performance is measured

    A Control Account is the EVM management level where scope, schedule, and budget are integrated, and where actual performance is measured against the baseline.

  7. When cumulative CPI falls below 1.0 on a project beyond the 20% completion point, studies show that the final CPI is likely to:

    Answer: Remain relatively stable close to the current cumulative CPI

    Research (Christle and Christle) demonstrates that once a project passes 20% completion, the cumulative CPI rarely improves by more than 10%, making early CPI a strong final cost predictor.