EVM Certification EVM Certification Cost Control & Budgeting 2

Question 1

Which EVM metric directly measures how efficiently the project budget is being used?

Accepted Answer

Cost Performance Index (CPI)

Answer

CPI = EV / AC and is the primary indicator of cost efficiency throughout the project.

Question 2

A project's Actual Cost (AC) is $120,000 and Earned Value (EV) is $100,000. What is the Cost Variance?

Accepted Answer

-$20,000

Answer

CV = EV – AC = $100,000 – $120,000 = –$20,000, indicating the project is $20,000 over budget.

Question 3

What does a TCPI greater than 1.0 indicate for remaining project work?

Accepted Answer

Greater cost efficiency is required than has been achieved to date

Answer

TCPI > 1.0 means the team must perform more efficiently than current rates to meet the budget goal.

Question 4

Which of the following best describes Control Account in EVM?

Accepted Answer

A management control point where scope, schedule, and budget are integrated and measured

Answer

Control Accounts are the primary level at which EVM performance is measured, integrating scope, schedule, and cost.

Question 5

The Management Reserve (MR) in EVM is best described as:

Accepted Answer

Budget withheld for unknown unknowns outside the project baseline

Answer

Management Reserve is held outside the PMB for unforeseen scope changes and unknown risks, not part of EVM calculations.

EVM Certification Practice Test