EVM Certification Cost Control & Budgeting Flashcards

Which cost baseline document in EVM is also known as the Performance Measurement Baseline (PMB)?

Answer: Time-phased budget that spans the project lifecycle

The PMB is the time-phased budget against which project performance is measured, built by summing all control account budgets.

Undistributed Budget (UB) in EVM refers to:

Answer: Budget for identified scope not yet assigned to a control account

Undistributed Budget holds budget for authorized work that hasn't been allocated to specific control accounts yet.

An EAC calculated as BAC divided by CPI assumes:

Answer: Future cost efficiency will mirror the current cumulative CPI trend

EAC = BAC / CPI projects that future performance will continue at the same efficiency rate as achieved to date.

What is the purpose of a Budgeted Cost of Work Scheduled (BCWS) in legacy EVM terminology?

Answer: It represents the Planned Value (PV) — the authorized budget for scheduled work

BCWS is the legacy term for Planned Value (PV), representing the budgeted cost of work that was scheduled to be done.

Which scenario best justifies a formal re-baselining of the Performance Measurement Baseline?

Answer: A major approved scope change that fundamentally alters the project plan

Re-baselining is warranted only for significant, approved scope changes that make the current baseline an unrealistic benchmark.

In EVM cost control, what does a negative Variance at Completion (VAC) signal?

Answer: The project is forecasted to finish over budget

A negative VAC = BAC – EAC means EAC exceeds BAC, forecasting a cost overrun at project completion.