PMBOK Earned Value Management (EVM) Questions and Answers

Question 1

A project has a Planned Value (PV) of $100,000, an Earned Value (EV) of $90,000, and an Actual Cost (AC) of $110,000. What is the Cost Performance Index (CPI), and what does it indicate?

Accepted Answer

0.82, indicating the project is over budget.

Answer

1.22, indicating the project is under budget.

Answer

0.90, indicating the project is behind schedule.

Answer

1.10, indicating the project is ahead of schedule.

Question 2

A project status report indicates a Schedule Performance Index (SPI) of 1.2 and a Cost Performance Index (CPI) of 0.8. How should the project manager interpret these results?

Accepted Answer

The project is ahead of schedule and over budget.

Answer

The project is behind schedule and under budget.

Answer

The project is behind schedule and over budget.

Answer

The project is ahead of schedule and under budget.

Question 3

A project manager determines that the original budget is no longer viable due to unforeseen circumstances and that future work will be performed at the budgeted rate. Which formula should be used to calculate the Estimate at Completion (EAC)?

Accepted Answer

EAC = AC + (BAC - EV)

Answer

EAC = BAC / CPI

Answer

EAC = AC + Bottom-up ETC

Answer

EAC = AC + (BAC - EV) / (CPI * SPI)

Question 4

In Earned Value Management, which of the following best describes Schedule Variance (SV)?

Accepted Answer

The difference between the earned value and the planned value.

Answer

A ratio of earned value to planned value.

Answer

The difference between the actual cost and the earned value.

Answer

The measure of the cost efficiency of budgeted resources.

Question 5

A project is currently over budget. The project manager needs to determine the cost performance required for the remainder of the project to achieve the original Budget at Completion (BAC). Which metric should be calculated?

Accepted Answer

To-Complete Performance Index (TCPI)

Answer

Cost Performance Index (CPI)

Answer

Variance at Completion (VAC)

Answer

Estimate to Complete (ETC)

Question 6

To perform Earned Value Analysis, which of the following three data points are required as the fundamental inputs?

Accepted Answer

Planned Value (PV), Earned Value (EV), and Actual Cost (AC)

Answer

Planned Value (PV), Actual Cost (AC), and Schedule Variance (SV)

Answer

Earned Value (EV), Cost Variance (CV), and Budget at Completion (BAC)

Answer

Actual Cost (AC), Estimate at Completion (EAC), and Variance at Completion (VAC)