Project Management Earned Value Management (EVM) Questions and Answers

Question 1

A project has a Budget at Completion (BAC) of $150,000.
At the current status date, the project has an Earned Value (EV) of $60,000 and an Actual Cost (AC) of $75,000.
The project manager determines that the current cost variances are atypical and expects the remaining work to be completed at the budgeted rate.
Which formula should be used to calculate the Estimate at Completion (EAC)?

Accepted Answer

EAC = AC + (BAC - EV)

Answer

EAC = BAC / CPI

Answer

EAC = AC + Bottom-up ETC

Answer

EAC = AC + [(BAC - EV) / (CPI * SPI)]

Question 2

During a monthly project review, the project manager reports a Cost Performance Index (CPI) of 1.15 and a Schedule Performance Index (SPI) of 0.95. Which of the following statements provides the BEST interpretation of these metrics?

Accepted Answer

The project is under budget and behind schedule.

Answer

The project is over budget and behind schedule.

Answer

The project is under budget and ahead of schedule.

Answer

The project is over budget and ahead of schedule.

Question 3

A project is halfway through its planned duration. The following data is available: Budget at Completion (BAC) = $200,000; Planned Value (PV) = $100,000; Earned Value (EV) = $80,000; Actual Cost (AC) = $90,000. What is the Cost Variance (CV) for this project?

Accepted Answer

-$10,000

Answer

$10,000

Answer

-$20,000

Answer

$20,000

Question 4

The To-Complete Performance Index (TCPI) is a crucial EVM metric. What does a TCPI value of 1.2 indicate?

Accepted Answer

The remaining work must be completed with 20% greater cost efficiency to meet the budget.

Answer

The project can continue performing at the current CPI and still meet the budget.

Answer

The project is currently performing 20% under budget.

Answer

The project has 20% of its budget remaining.

Question 5

A project manager is analyzing performance data. The Schedule Variance (SV) is calculated to be a positive value. What does this signify about the project's status?

Accepted Answer

The project has completed more work than was planned to be completed at this point.

Answer

The project has spent less money than budgeted.

Answer

The project will be completed under the total budget.

Answer

The project's critical path has been shortened.

Question 6

A project has a CPI of 0.80. The project manager expects this rate of cost performance to continue for the remainder of the project. If the Budget at Completion (BAC) is $500,000, what is the most likely Estimate at Completion (EAC)?

Accepted Answer

$625,000

Answer

$400,000

Answer

$500,000

Answer

$580,000