EVM Certification Cost Control & Budgeting Flashcards

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

Answer: Cost Performance Index (CPI)

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

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

Answer: -$20,000

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

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

Answer: Greater cost efficiency is required than has been achieved to date

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

Which of the following best describes Control Account in EVM?

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

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

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

Answer: Budget withheld for unknown unknowns outside the project baseline

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

When using the 0/100 earning rule in EVM, value is credited:

Answer: Only upon full completion of the work package

The 0/100 rule credits zero earned value at start and 100% only when the work package is fully complete.