Free Fundamentals of Earned Value Management MCQ Questions and Answers

Question 1

If the ETC work is completed at the planned rate, how will your EAC be determined?

Accepted Answer

EAC = AC + BAC – EV

Answer

The correct formula to calculate the Estimate at Completion (EAC) when the Estimate to Complete (ETC) work will be performed at the budgeted rate is:
EAC = AC + BAC - EV
Where:
AC (Actual Cost) represents the actual cost incurred for the work performed.
BAC (Budget at Completion) represents the total budget allocated for the project.
EV (Earned Value) represents the value of work that has been completed and approved.

Question 2

The project's remaining budget is given as

Accepted Answer

(BAC - AC) or (EAC - AC)

Answer

(BAC - AC) is used to express the budget remaining on the project, while (EAC - AC) represents the variance between the projected total cost and the actual cost incurred.

Question 3

Actual Cost (AC) minus Earned Value (EV) is

Accepted Answer

Cost Variance (CV)

Answer

The Cost Variance (CV) is a valuable metric in project management to monitor and control project costs, allowing project managers to assess the financial performance of the project.

Question 4

You can utilize the Earned Value Methodology (EVM) to

Accepted Answer

Forecast future performance based on past performance

Answer

The Earned Value Methodology (EVM) can be used as a means to forecast future performance based on past performance.
EVM is a project management technique that integrates the measurement of project scope, schedule, and cost performance. It involves comparing the planned value (PV), earned value (EV), and actual cost (AC) to assess the project's progress and performance.

Question 5

What method is the most accurate for calculating the Estimate to Completion? (ETC)

Accepted Answer

Manual forecasting of cost of the remaining work

Answer

Manual forecasting of the cost of the remaining work can be an effective approach to accurately calculate the Estimate to Completion (ETC) in project management. While there are other techniques and methodologies available, manual forecasting allows project managers to leverage their expertise and knowledge of the project to make informed estimations.

EVM Certification Practice Test

EVM Certification Practice Test

Free Fundamentals of Earned Value Management MCQ Questions and Answers