Earned Value Management Flashcards
6 cards from real Financial Management for Project Managers practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Earned Value Management flashcards as text
A project has EV = $60,000, PV = $70,000, and AC = $65,000. Which of the following statements is correct?
Answer: The project is behind schedule and over budget
SV = EV - PV = $60,000 - $70,000 = -$10,000 (behind schedule); CV = EV - AC = $60,000 - $65,000 = -$5,000 (over budget).
In EVM reporting, a cumulative CPI that falls below 1.0 early in the project is significant because:
Answer: Research shows CPI rarely improves significantly as the project progresses
Studies by the US Department of Defense and others show that the cumulative CPI is relatively stable once 20% of the project is complete and rarely improves significantly afterward.
Which EVM metric is sometimes called the 'S-curve' when plotted over time?
Answer: Planned Value (PV) cumulative curve
The cumulative PV plotted over the project timeline typically forms an S-shape (slow start, rapid middle, slow finish), commonly called the S-curve baseline.
EVM was originally developed and mandated by which organization for large government contracts?
Answer: U.S. Department of Defense (DoD)
The U.S. Department of Defense developed and mandated Earned Value Management (originally called PERT/Cost) for defense contracts in the 1960s.
When the SPI approaches 1.0 near the end of a project, it can be misleading because:
Answer: All remaining planned value converges to EV as work completes, masking real schedule delays
As a project nears completion, all PV is eventually equaled by EV (everything gets done), so SPI converges to 1.0 even if the project finished late.
Which EVM reporting document summarizes cost and schedule performance metrics at all levels of the WBS for management review?
Answer: Cost Performance Report (CPR)
The Cost Performance Report (CPR) is the formal EVM reporting document used on US government contracts to communicate cost, schedule, and performance data hierarchically.