CPP Earned Value Management 2

Question 1

A project has a Budget at Completion (BAC) of $200,000 and is 40% complete at the scheduled midpoint. The actual cost so far is $95,000. What is the Cost Performance Index (CPI)?

Accepted Answer

0.84

Answer

EV = 40% × $200,000 = $80,000; CPI = EV/AC = $80,000/$95,000 ≈ 0.84.

Question 2

Which EVM metric specifically measures how efficiently the project team is using the time allocated?

Accepted Answer

SPI

Answer

Schedule Performance Index (SPI) = EV/PV and measures schedule efficiency.

Question 3

A project's Estimate at Completion (EAC) calculated as BAC/CPI is best used when:

Accepted Answer

Past cost performance is expected to continue

Answer

EAC = BAC/CPI assumes the current CPI will persist for all remaining work.

Question 4

If a project's SPI is 0.90 and its CPI is 1.10, which statement best describes the project status?

Accepted Answer

Behind schedule but under budget

Answer

SPI < 1 indicates behind schedule; CPI > 1 indicates under budget (cost efficient).

Question 5

The Variance at Completion (VAC) formula is:

Accepted Answer

BAC − EAC

Answer

VAC = BAC − EAC; a negative VAC indicates a projected cost overrun.

(CPP) Certified Project Professional Practice Test

(CPP) Certified Project Professional Practice Test

CPP Earned Value Management 2