Practice Test Geeks(PMI) Project Management Institute Certified Practice Test
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Earned Value Management Flashcards

7 cards from real PMI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Earned Value Management flashcards as text

  1. A project manager wants to calculate TCPI using the EAC instead of BAC. Which formula applies?

    Answer: TCPI = (BAC - EV) / (EAC - AC)

    When using EAC as the target, TCPI = (BAC - EV) / (EAC - AC), showing efficiency needed on remaining work to meet the revised budget.

  2. What is the primary purpose of an Integrated Baseline Review (IBR) in EVM?

    Answer: To verify that the PMB is realistic and the team understands it

    An IBR is conducted to confirm that the performance measurement baseline is achievable and that the project team has a common understanding of the plan.

  3. A project has BAC=$1,000,000, EV=$600,000, AC=$700,000, and PV=$750,000. What is the Cost Variance (CV)?

    Answer: -$100,000

    CV = EV - AC = $600,000 - $700,000 = -$100,000, indicating the project is $100,000 over budget for work completed.

  4. In EVM reporting, what does a 'rubber baseline' refer to?

    Answer: A baseline that is frequently revised to hide poor performance

    A rubber baseline is an improper practice where the baseline is continually changed to mask performance problems and keep variances near zero.

  5. Which EVM metric is measured in units of currency or time, while its companion metric is expressed as a ratio?

    Answer: SV and SPI

    Schedule Variance (SV) is a currency-denominated difference (EV - PV), while Schedule Performance Index (SPI) is the dimensionless ratio (EV / PV).

  6. Under PMI standards, Management Reserve (MR) is different from contingency reserve because:

    Answer: MR is held by management for unknown unknowns and is not included in the PMB

    Management Reserve addresses unknown unknowns and is held outside the PMB; contingency reserve addresses known unknowns and is included in the cost baseline.

  7. A project manager reports an SPI of 0.85 at month 6 of a 12-month project. What corrective action would MOST directly improve the SPI?

    Answer: Crash the schedule by adding resources to critical path activities

    SPI < 1.0 indicates a schedule lag; crashing the schedule (adding resources) accelerates work completion, increasing EV relative to PV.