EVM EVM Variance Analysis and Interpretation 1

Question 1

What does a negative Cost Variance (CV) indicate in EVM?

Accepted Answer

The project has spent more than the earned value

Answer

A negative CV (EV - AC < 0) means actual costs exceed earned value, indicating the project is experiencing a cost overrun.

Question 2

What is the correct formula for Schedule Variance (SV)?

Accepted Answer

SV = EV - PV

Answer

Schedule Variance is calculated as EV minus PV, measuring the difference between work accomplished and work planned to be accomplished.

Question 3

A project has an Earned Value of $400,000 and a Planned Value of $500,000. What is the Schedule Variance?

Accepted Answer

-$100,000

Answer

SV = EV - PV = $400,000 - $500,000 = -$100,000, indicating the project is behind schedule by $100,000 worth of work.

Question 4

What does Variance at Completion (VAC) represent?

Accepted Answer

The expected cost overrun or underrun at project completion

Answer

VAC = BAC - EAC, representing the projected difference between the original budget and the estimated final cost of the project.

Question 5

A positive Schedule Variance (SV) indicates which of the following about a project?

Accepted Answer

The project is ahead of schedule

Answer

A positive SV (EV > PV) means more work was accomplished than planned at the data date, indicating the project is ahead of schedule.

EVM Certification Practice Test