PMI Earned Value Management 3

Question 1

A project manager is using a cumulative CPI of 0.75 and the project has $400,000 remaining in BAC. Which EAC formula is most appropriate when assuming current inefficiencies will continue?

Accepted Answer

EAC = BAC / CPI

Answer

EAC = BAC / CPI is used when the current cost performance rate is expected to continue for the rest of the project.

Question 2

Which EVM term represents the authorized budget assigned to scheduled work?

Accepted Answer

Planned Value (PV)

Answer

Planned Value (PV) is the authorized budget allocated to the work that was scheduled to be accomplished by a specific point in time.

Question 3

A project shows SPI = 1.10 and CPI = 0.90. How should this situation be interpreted?

Accepted Answer

Ahead of schedule but over budget

Answer

SPI > 1.0 means ahead of schedule; CPI < 1.0 means over budget — so the project is doing more work than planned but spending too much to do it.

Question 4

In EVM, what does the term 'Budgeted Cost of Work Performed' (BCWP) correspond to in modern PMI terminology?

Accepted Answer

Earned Value (EV)

Answer

BCWP is the older term for Earned Value (EV) — the authorized budget for the work actually accomplished.

Question 5

A work package has a BAC of $10,000 and is 40% complete. Using the percent complete method, what is the Earned Value?

Accepted Answer

$4,000

Answer

EV = % Complete × BAC = 0.40 × $10,000 = $4,000.

(PMI) Project Management Institute Certified Practice Test

(PMI) Project Management Institute Certified Practice Test

PMI Earned Value Management 3