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

Question 2

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

Accepted Answer

Cost Performance Index (CPI)

Answer

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.

Question 3

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

Accepted Answer

-$50,000

Answer

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

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

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

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

When the original estimate is no longer valid, EAC = AC + new ETC uses the actual cost to date plus a fresh bottom-up estimate for remaining work.

(CCT) Certified Cost Technician Practice Test

(CCT) Certified Cost Technician Practice Test

CCT Earned Value Management 3