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
In Earned Value Management (EVM), the Budget at Completion (BAC) represents:
Answer: The total authorized budget for the entire project
BAC is the total planned budget authorized for the project, established during planning and used as the baseline denominator in many EVM calculations.
Earned Value (EV) in EVM is defined as:
Answer: The budgeted cost of work that has been completed
EV (also called BCWP — Budgeted Cost of Work Performed) measures the value of work actually completed, expressed in terms of the approved budget for that work.
Cost Variance (CV) in EVM is calculated as:
Answer: EV - AC
Cost Variance = EV - AC; a positive CV means the project is under budget, and a negative CV means it is over budget.
Schedule Variance (SV) in EVM is calculated as:
Answer: EV - PV
Schedule Variance = EV - PV; a positive SV means the project is ahead of schedule, and a negative SV means it is behind schedule.
A Cost Performance Index (CPI) of 0.85 means:
Answer: For every dollar spent, only $0.85 of planned value is earned — the project is over budget
A CPI less than 1.0 indicates cost overrun — the project is getting only $0.85 of earned value for every $1.00 actually spent.
The Schedule Performance Index (SPI) is calculated as:
Answer: EV / PV
SPI = EV / PV; an SPI greater than 1.0 indicates the project is ahead of schedule, and an SPI less than 1.0 indicates it is behind schedule.