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

CPI = EV / AC = $300,000 / $350,000 = 0.86, indicating the project is over budget.

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

An SPI greater than 1.0 means the project is earning value faster than planned, indicating it is ahead of schedule.

Question 3

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

Accepted Answer

Planned Value (PV)

Answer

Planned Value is the authorized budget assigned to work scheduled to be accomplished for a specific time period.

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

A negative VAC (BAC - EAC) indicates the project is expected to cost more than the original budget at completion.

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

TCPI = (BAC - EV) / (BAC - AC) measures the cost performance required to meet the BAC with remaining resources.

PMBOK - Project Management Body of Knowledge Practice Test

PMBOK - Project Management Body of Knowledge Practice Test

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