PMBOK Earned Value Management (EVM) 2

Question 1

A project has a BAC of $500,000, EV of $200,000, and AC of $250,000. What is the Cost Performance Index (CPI)?

Accepted Answer

0.80

Answer

CPI = EV / AC = $200,000 / $250,000 = 0.80, meaning the project is getting $0.80 of value for every $1 spent.

Question 2

Which EVM metric best indicates whether a project will finish on time?

Accepted Answer

Schedule Performance Index (SPI)

Answer

SPI = EV / PV and measures schedule efficiency; an SPI below 1.0 indicates the project is behind schedule.

Question 3

The To-Complete Performance Index (TCPI) based on BAC is calculated as:

Accepted Answer

(BAC - EV) / (BAC - AC)

Answer

TCPI (BAC) = (BAC - EV) / (BAC - AC), representing the cost efficiency needed on remaining work to meet the original budget.

Question 4

A project's SPI is 1.2 and CPI is 0.9. How should the project manager interpret this?

Accepted Answer

Ahead of schedule but over budget

Answer

SPI > 1.0 means ahead of schedule; CPI < 1.0 means over budget — a combination requiring cost control attention.

Question 5

Estimate at Completion (EAC) using the formula EAC = AC + (BAC - EV) assumes:

Accepted Answer

The remaining work will be done at the budgeted rate

Answer

EAC = AC + (BAC - EV) assumes the remaining work will be completed exactly as originally planned (at budget).

PMBOK - Project Management Body of Knowledge Practice Test