PCC Performance Monitoring & Reporting 2 — Questions and Answers
Question 1: A project has a BAC of $500,000, EV of $320,000, and AC of $370,000. What is the Cost Performance Index (CPI)?
- 0.865 (Correct answer)
- 1.156
- 0.640
- 0.740
Correct answer: 0.865
CPI = EV / AC = $320,000 / $370,000 = 0.865, indicating cost overrun.
Question 2: Which reporting technique displays cumulative planned value, earned value, and actual cost curves on a single chart?
- S-curve analysis (Correct answer)
- Tornado diagram
- Fishbone chart
- Pareto chart
Correct answer: S-curve analysis
S-curve analysis plots PV, EV, and AC cumulatively over time, showing performance trends visually.
Question 3: When SPI = 1.0 and CPI = 0.75, what is the most accurate project status description?
- On schedule but over budget (Correct answer)
- Ahead of schedule and under budget
- Behind schedule and over budget
- On schedule and under budget
Correct answer: On schedule but over budget
SPI of 1.0 means exactly on schedule, while CPI below 1.0 indicates cost overrun.
Question 4: What does a positive Schedule Variance (SV) indicate?
- The project is ahead of schedule (Correct answer)
- The project is behind schedule
- The project is over budget
- The project is under budget
Correct answer: The project is ahead of schedule
SV = EV - PV; a positive value means more work has been completed than was planned.
Question 5: A project manager calculates the TCPI using the remaining budget formula. Which formula is correct when EAC has been revised?
- (BAC - EV) / (EAC - AC) (Correct answer)
- (BAC - EV) / (BAC - AC)
- EV / AC
- (EAC - AC) / (BAC - EV)
Correct answer: (BAC - EV) / (EAC - AC)
When using a revised EAC, TCPI = (BAC - EV) / (EAC - AC) to determine required future efficiency.
Question 6: Which variance threshold approach triggers a formal management review and corrective action plan?
- Variance at Completion (VAC) exceeding a pre-defined threshold (Correct answer)
- Any negative SV value
- EAC exceeding BAC by any amount
- CPI dropping below 1.5
Correct answer: Variance at Completion (VAC) exceeding a pre-defined threshold
VAC thresholds defined in the project control plan trigger formal reviews when forecast overruns exceed acceptable limits.
Question 7: In Earned Value Management, what does the term 'rubber baseline' refer to?
- A PMB that is repeatedly revised to hide true variances (Correct answer)
- A flexible schedule baseline adjusted for scope changes
- A contingency reserve added to BAC
- A baseline recalculated monthly using actuals
Correct answer: A PMB that is repeatedly revised to hide true variances
A rubber baseline is an improper practice where the PMB is changed to mask poor performance rather than reflect true change.
PCC Performance Monitoring & Reporting 2
A project has a BAC of $500,000, EV of $320,000, and AC of $370,000.
What is the Cost Performance Index (CPI)?