CPE CPE Performance Measurement & Reporting 2 — Questions and Answers
Question 1: In Earned Value Management (EVM), the Cost Variance (CV) is calculated as:
- AC – PV
- EV – AC (Correct answer)
- BAC – EAC
- PV – EV
Correct answer: EV – AC
CV = EV – AC; a positive CV means the work accomplished cost less than budgeted, while a negative CV indicates a cost overrun.
Question 2: A To-Complete Performance Index (TCPI) greater than 1.0 means:
- The project has cost and schedule surplus
- The remaining work must be completed more efficiently than past performance to meet the budget goal (Correct answer)
- The project is ahead of schedule
- No corrective action is needed
Correct answer: The remaining work must be completed more efficiently than past performance to meet the budget goal
TCPI > 1.0 indicates that future work efficiency must exceed historical efficiency to achieve the target EAC or BAC.
Question 3: Which schedule metric is best used to identify trends in float erosion over time?
- Planned Value (PV)
- Total Float Trend Analysis plotted period-over-period (Correct answer)
- Cost Performance Index (CPI)
- Resource utilization rate
Correct answer: Total Float Trend Analysis plotted period-over-period
Plotting total float of critical and near-critical paths over successive updates reveals whether float is being consumed faster than expected.
Question 4: A project's Baseline Execution Index (BEI) is used to measure:
- Cumulative budget expenditure
- The ratio of activities completed on time vs. those that were planned to be complete (Correct answer)
- Subcontractor payment compliance
- Safety incident frequency
Correct answer: The ratio of activities completed on time vs. those that were planned to be complete
BEI measures schedule execution fidelity by comparing how many activities were completed as planned vs. what the baseline required.
Question 5: The primary purpose of a project Variance Analysis Report (VAR) is to:
- Replace the monthly owner report
- Document the root cause, impact, and corrective action for significant schedule or cost variances (Correct answer)
- Track weather delays only
- Authorize change orders
Correct answer: Document the root cause, impact, and corrective action for significant schedule or cost variances
VARs provide a structured explanation of why variances occurred and what actions will be taken to recover, forming a key control tool.
Question 6: Which percent-complete measurement method is most objective for construction activities?
- Subjective manager estimate
- Units completed method — units of work done divided by total units (Correct answer)
- Start/finish rule (0/100)
- Weighted milestone based on engineer judgment alone
Correct answer: Units completed method — units of work done divided by total units
The units completed method ties percent complete to a countable, verifiable output, minimizing subjectivity in progress reporting.
CPE CPE Performance Measurement & Reporting 2
In Earned Value Management (EVM), the Cost Variance (CV) is calculated as: