PMBOK PMBOK Earned Value Management (EVM) Questions and Answers 3

Question 1

A project has EV = $200,000, PV = $250,000, and AC = $220,000. What is the Schedule Variance (SV)?

Accepted Answer

-$50,000

Answer

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?

Accepted Answer

EAC = AC + (BAC - EV)

Answer

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?

Accepted Answer

$1,111,111

Answer

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?

Accepted Answer

The remaining work must be performed more efficiently than planned to stay within budget

Answer

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?

Accepted Answer

Cumulative CPI

Answer

Research shows that cumulative CPI stabilizes early in a project and reliably forecasts the final cost outcome.

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 3