PMI Earned Value Management 2

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)?

Accepted Answer

-$20,000

Answer

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?

Accepted Answer

Estimate at Completion (EAC)

Answer

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?

Accepted Answer

The project is getting $0.80 of value for every $1.00 spent

Answer

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?

Accepted Answer

Future work will be performed at the planned rate

Answer

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?

Accepted Answer

The team needs to work 15% more efficiently on remaining work to meet the BAC

Answer

TCPI of 1.15 means the remaining work must be completed at 115% efficiency to stay within the original budget.

(PMI) Project Management Institute Certified Practice Test

(PMI) Project Management Institute Certified Practice Test

PMI Earned Value Management 2