PMI Earned Value Management 2 — Questions and Answers
Question 1: A project has a Budget at Completion (BAC) of $200,000, Planned Value (PV) of $80,000, and Earned Value (EV) of $60,000. What is the Schedule Variance (SV)?
- $20,000
- -$20,000 (Correct answer)
- -$140,000
- $140,000
Correct answer: -$20,000
SV = EV - PV = $60,000 - $80,000 = -$20,000, indicating the project is behind schedule.
Question 2: Which EVM metric would a project manager use to forecast the total cost at project completion based on current performance?
- Cost Performance Index (CPI)
- Estimate at Completion (EAC) (Correct answer)
- Budget at Completion (BAC)
- To-Complete Performance Index (TCPI)
Correct answer: Estimate at Completion (EAC)
EAC is the forecasted total cost to complete the project based on current performance trends.
Question 3: If the Cost Performance Index (CPI) is 0.80, what does this indicate about project spending?
- The project is 20% under budget
- The project is getting $0.80 of value for every $1.00 spent (Correct answer)
- The project will finish 20% early
- The project has spent 80% of its budget
Correct answer: The project is getting $0.80 of value for every $1.00 spent
A CPI of 0.80 means the project delivers only $0.80 worth of planned work for every $1.00 actually spent, indicating cost overrun.
Question 4: The formula EAC = AC + (BAC - EV) assumes which condition?
- Future work will be performed at the current CPI
- Future work will be performed at the planned rate (Correct answer)
- The remaining work will cost nothing
- The project should be rebaselined
Correct answer: Future work will be performed at the planned rate
This EAC formula assumes remaining work will proceed at the originally planned efficiency, not at the current performance rate.
Question 5: A project's TCPI calculated using BAC is 1.15. What does this mean for the project team?
- The team needs to work 15% more efficiently on remaining work to meet the BAC (Correct answer)
- The team is 15% ahead of schedule
- The project has 15% contingency remaining
- The team can afford to slow down by 15%
Correct answer: The team needs to work 15% more efficiently on remaining work to meet the BAC
TCPI of 1.15 means the remaining work must be completed at 115% efficiency to stay within the original budget.
Question 6: On a project with BAC=$500,000, EV=$200,000, and AC=$250,000, what is the Estimate to Complete (ETC) using the typical EAC formula (EAC = AC + BAC - EV / CPI)?
- $375,000 (Correct answer)
- $250,000
- $300,000
- $187,500
Correct answer: $375,000
CPI=0.80; EAC = $250,000 + ($300,000/0.80) = $625,000; ETC = EAC - AC = $625,000 - $250,000 = $375,000.
Question 7: Which of the following best describes the Variance at Completion (VAC)?
- The difference between EAC and BAC showing expected over/under-run (Correct answer)
- The amount of budget spent so far
- The difference between EV and PV at project end
- The forecasted schedule deviation at project close
Correct answer: The difference between EAC and BAC showing expected over/under-run
VAC = BAC - EAC, representing how much over or under budget the project is expected to finish.
PMI Earned Value Management 2
A project has a Budget at Completion (BAC) of $200,000, Planned Value (PV) of $80,000, and Earned Value (EV) of $60,000.
What is the Schedule Variance (SV)?