EVM Certification EVM Certification Cost Control & Budgeting

Question 1

What does the Budget at Completion (BAC) represent in Earned Value Management?

Accepted Answer

The total planned cost for the entire project

Answer

The actual cost spent so far

Answer

The estimated cost to complete remaining work

Answer

The variance between planned and actual costs

Question 2

Which formula is used to calculate the Estimate at Completion (EAC) when future work is expected to proceed at the planned rate?

Accepted Answer

EAC = AC + (BAC - EV)

Answer

EAC = BAC / CPI

Answer

EAC = AC + ETC

Answer

EAC = BAC - CV

Question 3

A project has a CPI of 0.85. What does this indicate about the project's cost performance?

Accepted Answer

The project is over budget — getting only $0.85 of value per dollar spent

Answer

The project is under budget and performing efficiently

Answer

The project is on budget with minor variance

Answer

The project schedule is behind by 15%

Question 4

What is the Variance at Completion (VAC) formula?

Accepted Answer

VAC = BAC - EAC

Answer

VAC = EV - AC

Answer

VAC = BAC - AC

Answer

VAC = EV - PV

Question 5

On an EVM project, the Cost Variance (CV) is calculated as:

Accepted Answer

EV minus AC

Answer

PV minus AC

Answer

BAC minus EV

Answer

AC minus PV

Question 6

What is the primary purpose of the To-Complete Performance Index (TCPI)?

Accepted Answer

To determine the cost efficiency needed to meet a financial target for remaining work

Answer

To measure the ratio of earned value to planned value

Answer

To forecast the total cost at project completion

Answer

To calculate the schedule variance in cost terms