CPC Project Budget & Cost Control 2

Question 1

Earned Value (EV) represents:

Accepted Answer

The budgeted value of work actually completed to date

Answer

EV measures how much of the budget has been 'earned' by completing work, independent of what was actually spent.

Question 2

A Schedule Performance Index (SPI) of 0.8 means the project is:

Accepted Answer

Getting only $0.80 of schedule value for every $1.00 of planned work—behind schedule

Answer

SPI = EV / PV; a value below 1.0 indicates the project is behind schedule relative to the plan.

Question 3

The Cost Performance Index (CPI) is calculated as:

Accepted Answer

EV divided by AC (Earned Value ÷ Actual Cost)

Answer

CPI = EV / AC; a CPI above 1 means the project is getting more value per dollar spent than planned.

Question 4

Which term describes the total budget authorized for the project?

Accepted Answer

Budget at Completion (BAC)

Answer

BAC is the total approved budget for the project and serves as the denominator in many EVM calculations.

Question 5

A project coordinator notices that costs are consistently higher than planned. The BEST corrective action is to:

Accepted Answer

Analyze the root cause of the overrun and implement corrective actions to realign costs

Answer

Root cause analysis ensures the corrective action addresses the actual problem rather than just its symptoms.

CPC - Certified Project Coordinator Practice Test