PMBOK PMBOK Earned Value Management (EVM) Questions and Answers 3 — Questions and Answers
Question 1: A project has EV = $200,000, PV = $250,000, and AC = $220,000. What is the Schedule Variance (SV)?
- -$50,000 (Correct answer)
- $50,000
- -$20,000
- $30,000
Correct answer: -$50,000
SV = EV - PV = $200,000 - $250,000 = -$50,000, meaning the project is behind schedule.
Question 2: Which Estimate at Completion (EAC) formula assumes future work will be performed at the budgeted rate?
- EAC = AC + (BAC - EV) (Correct answer)
- EAC = BAC / CPI
- EAC = AC + (BAC - EV) / (CPI × SPI)
- EAC = AC + Bottom-Up ETC
Correct answer: EAC = AC + (BAC - EV)
EAC = AC + (BAC - EV) assumes the remaining work will be completed at the original budgeted rate regardless of past performance.
Question 3: If a project's CPI is 0.90 and the BAC is $1,000,000, what is the EAC using the cumulative CPI method?
- $1,111,111 (Correct answer)
- $900,000
- $1,100,000
- $1,000,000
Correct answer: $1,111,111
EAC = BAC / CPI = $1,000,000 / 0.90 = $1,111,111, projecting the final cost based on current cost efficiency.
Question 4: What does a TCPI value greater than 1.0 indicate when calculated against BAC?
- The remaining work must be performed more efficiently than planned to stay within budget (Correct answer)
- The project is currently under budget
- The project will finish under the original budget
- Past performance has been better than planned
Correct answer: The remaining work must be performed more efficiently than planned to stay within budget
A TCPI greater than 1.0 means the project must achieve better cost efficiency on remaining work than what the budget allows, which is harder to accomplish.
Question 5: Which EVM indicator is considered the most reliable early predictor of final project cost?
- Cumulative CPI (Correct answer)
- Schedule Variance (SV)
- Schedule Performance Index (SPI)
- Planned Value (PV)
Correct answer: Cumulative CPI
Research shows that cumulative CPI stabilizes early in a project and reliably forecasts the final cost outcome.
Question 6: A project has BAC = $800,000, EV = $400,000, AC = $500,000, and CPI = 0.80. Using the CPI-based EAC, what is the Estimate to Complete (ETC)?
- $500,000 (Correct answer)
- $400,000
- $300,000
- $600,000
Correct answer: $500,000
EAC = BAC / CPI = $800,000 / 0.80 = $1,000,000; ETC = EAC - AC = $1,000,000 - $500,000 = $500,000.
PMBOK PMBOK Earned Value Management (EVM) Questions and Answers 3
A project has EV = $200,000, PV = $250,000, and AC = $220,000.
What is the Schedule Variance (SV)?