EVM EVM Variance Analysis and Interpretation 3

Question 1

What is the To-Complete Performance Index (TCPI) used for in EVM?

Accepted Answer

To determine the cost efficiency required to meet a budget goal

Answer

To measure past cost performance on a project

Answer

To calculate the schedule variance for remaining work

Answer

To forecast the exact number of remaining tasks

Question 2

What is the formula for TCPI based on the Budget at Completion (BAC)?

Accepted Answer

TCPI = (BAC - EV) / (BAC - AC)

Answer

TCPI = EV / AC

Answer

TCPI = (EAC - AC) / (BAC - EV)

Answer

TCPI = BAC / EAC

Question 3

When analyzing EVM data, a consistent downward trend in CPI over several reporting periods most likely indicates:

Accepted Answer

A systemic cost performance problem requiring corrective action

Answer

A temporary data entry error that will self-correct

Answer

Improving project efficiency over time

Answer

The project is appropriately consuming contingency reserves

Question 4

Which of the following is a common root cause for an unfavorable Cost Variance (negative CV)?

Accepted Answer

Labor costs higher than originally estimated

Answer

Work being completed faster than planned

Answer

Scope reductions formally approved by the customer

Answer

Favorable weather conditions reducing work duration

Question 5

What is 're-planning' in the context of EVM variance recovery?

Accepted Answer

Adjusting the remaining work plan to recover from variances within the approved budget

Answer

Raising the Performance Measurement Baseline after a cost overrun

Answer

Removing unfavorable variances from EVM status reports

Answer

Replacing the project manager when CPI drops below 0.8

Question 6

If a project's cumulative CPI is 0.75 and its TCPI (based on BAC) is 1.35, what does this comparison most strongly suggest?

Accepted Answer

Completing the project within the original budget is highly unlikely

Answer

The project is easily recoverable within the original budget

Answer

The project's schedule is on track despite cost issues

Answer

The EVM data is likely incorrect and needs verification

Question 7

At project completion, what value should the cumulative Schedule Variance (SV) always equal, regardless of whether the project finished early or late?

Accepted Answer

Zero

Answer

The same value as the final Cost Variance

Answer

The Budget at Completion (BAC)

Answer

The Variance at Completion (VAC)