CST Baseline & Earned Value Schedule 2 — Questions and Answers
Question 1: A project has a Budget at Completion (BAC) of $200,000. At the status date, the Earned Value (EV) is $80,000 and the Actual Cost (AC) is $100,000. What is the Cost Variance (CV)?
- $20,000
- -$20,000 (Correct answer)
- $80,000
- -$80,000
Correct answer: -$20,000
CV = EV - AC = $80,000 - $100,000 = -$20,000, indicating the project is over budget.
Question 2: Which EVM metric indicates how efficiently the project is using its time budget?
- Cost Performance Index (CPI)
- Schedule Performance Index (SPI) (Correct answer)
- Schedule Variance (SV)
- To-Complete Performance Index (TCPI)
Correct answer: Schedule Performance Index (SPI)
SPI = EV / PV, measuring how efficiently the project is progressing relative to the planned schedule.
Question 3: A project baseline is formally approved and can only be changed through which process?
- Team consensus meeting
- Integrated Change Control (Correct answer)
- Status reporting
- Risk register update
Correct answer: Integrated Change Control
Changes to an approved baseline must go through Integrated Change Control to ensure formal review and authorization.
Question 4: If SPI = 0.75, what does this indicate about the project's schedule status?
- The project is 25% ahead of schedule
- The project is completing only 75 cents of work for every dollar planned (Correct answer)
- The project is 75% complete
- The project is over budget by 25%
Correct answer: The project is completing only 75 cents of work for every dollar planned
SPI < 1.0 means for every dollar of planned work, only $0.75 worth of work has been accomplished, indicating the project is behind schedule.
Question 5: What is the Estimate at Completion (EAC) formula when the original estimate is no longer valid and future work is expected to proceed at the current CPI?
- EAC = BAC / CPI (Correct answer)
- EAC = AC + BAC - EV
- EAC = AC + ETC
- EAC = BAC + CV
Correct answer: EAC = BAC / CPI
EAC = BAC / CPI is used when past cost performance is expected to continue for the remaining work.
Question 6: In Earned Value Management, the Performance Measurement Baseline (PMB) integrates which three elements?
- Scope, time, and quality
- Scope, schedule, and cost (Correct answer)
- Cost, risk, and procurement
- WBS, OBS, and RAM
Correct answer: Scope, schedule, and cost
The PMB integrates scope, schedule, and cost baselines to provide the integrated measurement foundation for EVM.
Question 7: A project's Planned Value (PV) is $50,000 and EV is $45,000. What is the Schedule Variance (SV)?
- $5,000
- -$5,000 (Correct answer)
- $95,000
- -$95,000
Correct answer: -$5,000
SV = EV - PV = $45,000 - $50,000 = -$5,000, indicating the project is behind the planned schedule.
CST Baseline & Earned Value Schedule 2
A project has a Budget at Completion (BAC) of $200,000.
At the status date, the Earned Value (EV) is $80,000 and the Actual Cost (AC) is $100,000.
What is the Cost Variance (CV)?