CCT Earned Value Management

Question 1

What does Earned Value (EV) represent in Earned Value Management?

Accepted Answer

The budgeted value of work actually completed

Answer

Earned Value (EV), also called Budgeted Cost of Work Performed (BCWP), represents the budgeted value of the work that has actually been completed.

Question 2

Which formula correctly calculates the Cost Performance Index (CPI)?

Accepted Answer

CPI = EV / AC

Answer

CPI = EV / AC; it measures how efficiently budget is being used, with values above 1.0 indicating under-budget performance.

Question 3

A Schedule Performance Index (SPI) of 0.85 indicates that the project is:

Accepted Answer

Behind schedule

Answer

An SPI below 1.0 means less work has been completed than was planned, indicating the project is behind schedule.

Question 4

What is the Budget at Completion (BAC)?

Accepted Answer

The total authorized budget for the project

Answer

BAC is the total authorized budget assigned to the project scope, established during baseline planning.

Question 5

Planned Value (PV) is also commonly referred to as:

Accepted Answer

Budgeted Cost of Work Scheduled (BCWS)

Answer

Planned Value (PV) is the traditional term BCWS—Budgeted Cost of Work Scheduled—representing the authorized budget for work planned by a given date.

(CCT) Certified Cost Technician Practice Test