PMBOK Earned Value Management (EVM) 5 — Questions and Answers
Question 1: Which EVM technique assigns 100% credit only when a work package is fully complete?
- 0/100 rule (Correct answer)
- 50/50 rule
- Percent complete
- Weighted milestones
Correct answer: 0/100 rule
The 0/100 rule credits no earned value until the work package is 100% complete, eliminating partial-credit subjectivity.
Question 2: A project manager finds that the TCPI based on EAC is significantly lower than the TCPI based on BAC. What does this suggest?
- The revised EAC is higher than BAC, giving more budget for remaining work (Correct answer)
- The project is ahead of schedule and under budget
- The remaining work requires less effort than originally planned
- The CPI has improved since the EAC was established
Correct answer: The revised EAC is higher than BAC, giving more budget for remaining work
When EAC > BAC, TCPI (EAC) < TCPI (BAC) because the denominator (remaining budget) is larger, making the efficiency target easier to achieve.
Question 3: Control accounts in EVM are management control points where:
- Scope, budget, and schedule are integrated and performance is measured (Correct answer)
- Only cost data is tracked against the WBS
- Project quality audits are conducted
- Risk responses are formally authorized
Correct answer: Scope, budget, and schedule are integrated and performance is measured
Control accounts sit at WBS nodes where scope, budget, actual costs, and schedule are integrated for performance measurement purposes.
Question 4: A project reports EV = $120,000, PV = $100,000, and AC = $130,000. Which statement is correct?
- The project is ahead of schedule but over budget (Correct answer)
- The project is behind schedule and under budget
- The project is ahead of schedule and under budget
- The project is behind schedule and over budget
Correct answer: The project is ahead of schedule but over budget
SV = EV - PV = +$20,000 (ahead of schedule); CV = EV - AC = -$10,000 (over budget).
Question 5: Which of the following is an example of a 'discrete effort' work package in EVM?
- Developing a software module with measurable deliverables (Correct answer)
- Administrative overhead that cannot be linked to any deliverable
- General management activities spread across the project
- Level of effort tasks like project coordination
Correct answer: Developing a software module with measurable deliverables
Discrete effort has a specific output or deliverable and can be directly planned and measured, unlike level-of-effort or apportioned effort.
Question 6: A project manager is using a fixed-formula method of 25/75 for a two-month work package. How much EV is credited at the start of month one?
- 25% of the work package budget (Correct answer)
- 75% of the work package budget
- 50% of the work package budget
- 0% until the work package is complete
Correct answer: 25% of the work package budget
The 25/75 fixed-formula rule credits 25% of budget upon start and the remaining 75% upon completion, regardless of actual work done in between.
Question 7: When comparing EVM-based forecasts to independent bottom-up estimates at completion (BAC), a project manager should:
- Use the comparison to validate forecast reasonableness and investigate large discrepancies (Correct answer)
- Always trust the bottom-up estimate over EVM calculations
- Discard the EVM forecast if it differs from the bottom-up by more than 5%
- Report only the EVM-based EAC to the sponsor
Correct answer: Use the comparison to validate forecast reasonableness and investigate large discrepancies
PMBOK recommends comparing EVM forecasts against independent estimates to check reasonableness; large gaps warrant investigation into assumptions.
PMBOK Earned Value Management (EVM) 5
Which EVM technique assigns 100% credit only when a work package is fully complete?