PMBOK PMBOK Earned Value Management (EVM) Questions and Answers 2

Question 1

A project has a Budget at Completion (BAC) of $500,000. After 60% of the work is completed, the Actual Cost (AC) is $350,000. What is the Cost Performance Index (CPI)?

Accepted Answer

0.86

Answer

1.17

Answer

0.71

Answer

1.00

Question 2

If a project's Schedule Performance Index (SPI) is 1.15, what does this indicate?

Accepted Answer

The project is ahead of schedule

Answer

The project is behind schedule

Answer

The project is on schedule

Answer

The project is over budget

Question 3

Which EVM metric represents the authorized budget assigned to scheduled work?

Accepted Answer

Planned Value (PV)

Answer

Earned Value (EV)

Answer

Actual Cost (AC)

Answer

Budget at Completion (BAC)

Question 4

A project manager calculates the Variance at Completion (VAC) as -$40,000. What does this mean?

Accepted Answer

The project is expected to finish $40,000 over budget

Answer

The project is expected to finish $40,000 under budget

Answer

The project is $40,000 behind schedule

Answer

The project has saved $40,000 to date

Question 5

What is the formula for the To-Complete Performance Index (TCPI) based on the Budget at Completion?

Accepted Answer

(BAC - EV) / (BAC - AC)

Answer

(BAC - AC) / (BAC - EV)

Answer

(EAC - EV) / (EAC - AC)

Answer

(BAC - EV) / (EAC - AC)

Question 6

In EVM, what does a Cost Variance (CV) of zero signify?

Accepted Answer

The project is exactly on budget

Answer

The project is exactly on schedule

Answer

The project has no remaining work

Answer

The project's CPI equals its SPI