CCT Earned Value Management 3

Question 1

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

Accepted Answer

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

Answer

The sum of all approved change orders

Answer

The actual cost curve plotted against the project schedule

Answer

The forecasted cost at project completion

Question 2

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

Accepted Answer

Cost Performance Index (CPI)

Answer

Variance at Completion (VAC)

Answer

Cost Variance (CV)

Answer

Schedule Performance Index (SPI)

Question 3

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

Accepted Answer

-$50,000

Answer

+$50,000

Answer

+$1,050,000

Answer

-$1,050,000

Question 4

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

Accepted Answer

The ratio of EV to BAC expressed as a percentage

Answer

The ratio of AC to BAC

Answer

The ratio of time elapsed to total project duration

Answer

The ratio of PV to BAC expressed as a percentage

Question 5

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

Accepted Answer

EAC = AC + new ETC

Answer

EAC = BAC / CPI

Answer

EAC = AC + (BAC - EV)

Answer

EAC = AC / SPI

Question 6

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

Accepted Answer

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

Answer

It tracks the total budget allocated to executive management

Answer

It records all financial transactions approved by the finance department

Answer

It defines the contract ceiling price agreed upon with the customer

Question 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:

Accepted Answer

Remain relatively stable close to the current cumulative CPI

Answer

Recover significantly as the project progresses

Answer

Improve dramatically due to corrective actions

Answer

Become irrelevant as EAC is recalculated from scratch