CCT Earned Value Management 2

Question 1

Which Estimate at Completion (EAC) formula is used when the current CPI is expected to continue for the remainder of the project?

Accepted Answer

EAC = BAC / CPI

Answer

When current cost efficiency (CPI) is expected to remain constant, EAC = BAC / CPI, projecting final cost based on how efficiently budget has been used so far.

Question 2

The To-Complete Performance Index (TCPI) based on BAC is calculated as:

Accepted Answer

(BAC - EV) / (BAC - AC)

Answer

TCPI = (BAC - EV) / (BAC - AC); it represents the cost efficiency that must be achieved on remaining work to meet the original budget.

Question 3

What does Variance at Completion (VAC) measure?

Accepted Answer

The difference between BAC and the Estimate at Completion

Answer

VAC = BAC - EAC; it projects how much over or under the original budget the project is expected to finish.

Question 4

If EV = $120,000 and PV = $140,000, what is the Schedule Variance (SV)?

Accepted Answer

-$20,000

Answer

SV = EV - PV = $120,000 - $140,000 = -$20,000, indicating $20,000 worth of planned work has not yet been completed.

Question 5

The Estimate to Complete (ETC) when current CPI is expected to continue is calculated as:

Accepted Answer

ETC = (BAC - EV) / CPI

Answer

ETC = (BAC - EV) / CPI estimates the cost to complete remaining work at the current spending efficiency rate.

(CCT) Certified Cost Technician Practice Test

(CCT) Certified Cost Technician Practice Test

CCT Earned Value Management 2