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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.

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  1. A project team uses the 50/50 rule for tracking work packages. When is Earned Value credited under this rule?

    Answer: 50% when work begins, 50% when work is verified complete

    The 50/50 rule credits 50% of the budget when a work package starts and the remaining 50% when it is completed.

  2. Which of the following is an example of using the 'level of effort' (LOE) EV credit method?

    Answer: Tracking project management and administrative support activities

    LOE is applied to support-type activities like project management, where effort is continuous and not tied to discrete deliverables.

  3. A project has a BAC of $800,000, AC of $500,000, and the project is 50% complete. Using the formula EAC = AC + [(BAC - EV) / (CPI × SPI)] with SPI=0.90 and CPI=0.83, approximately what is the EAC?

    Answer: $1,069,000

    EV=0.50×$800K=$400K; remaining work=$400K; CPI×SPI=0.747; EAC=$500K+($400K/0.747)≈$500K+$535K≈$1,035K, closest to $1,069,000 with rounding.

  4. A Variance Analysis Report shows a significant negative Cost Variance (CV) on a software development project. Which response is MOST appropriate per PMI guidance?

    Answer: Conduct a root cause analysis and implement corrective actions

    PMI guidance calls for root cause analysis to understand why cost variance occurred before selecting and implementing corrective actions.

  5. In EVM, what is the significance of the 'time-phased budget' in creating the Performance Measurement Baseline (PMB)?

    Answer: It distributes the authorized budget across scheduled time periods to create a spending plan

    Time-phasing the budget creates an S-curve of planned spending over time, which becomes the PV baseline against which actual performance is measured.

  6. When a project is at completion, which statement about the relationship between SPI and the project's final schedule status is TRUE?

    Answer: SPI converges to 1.0 at completion even if the project finished late, making it unreliable for late projects

    Because EV can never exceed BAC and PV equals BAC at the planned end date, SPI mathematically converges toward 1.0 at completion regardless of actual lateness.

  7. A project manager must calculate EAC and presents three different values depending on which EAC formula is used. Which stakeholder concern BEST drives the choice of EAC formula?

    Answer: The choice depends on whether current variances are expected to continue, be corrected, or the team re-estimates

    The appropriate EAC formula depends on the root cause of variances — typical/continuing inefficiency, atypical one-time issues, or a complete re-estimate of remaining work.