Earned Value Management (EVM) Flashcards
7 cards from real Project Management practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Earned Value Management (EVM) flashcards as text
A project has EV = $150,000, PV = $120,000, and AC = $140,000. What is the Schedule Variance (SV)?
Answer: $30,000
SV = EV - PV = $150,000 - $120,000 = +$30,000, meaning the project has accomplished $30,000 more work than planned.
An EVM reporting system shows EAC = $950,000 and BAC = $900,000. What is the VAC?
Answer: -$50,000
VAC = BAC - EAC = $900,000 - $950,000 = -$50,000, indicating a projected cost overrun of $50,000 at completion.
Which EVM baseline is directly affected when the project manager formally approves a scope change through integrated change control?
Answer: Performance Measurement Baseline (PMB)
Approved scope changes update the PMB, which integrates scope, schedule, and cost — all three baselines may be adjusted.
A project manager wants to use EVM but the work is highly repetitive with fixed unit costs. Which earned value technique is most appropriate?
Answer: Units completed method
The units completed method works best for repetitive tasks where each unit has a known budgeted cost, making EV calculation straightforward.
What is the relationship between EVM and the Work Breakdown Structure (WBS)?
Answer: EVM performance is measured at control accounts aligned to WBS elements
EVM relies on the WBS to define control accounts where scope, schedule, and cost are integrated and performance is measured.
Level of Effort (LOE) activities in EVM are characterized by which of the following?
Answer: They have an SPI that always equals 1.0 and do not contribute meaningful schedule variance
LOE activities (e.g., project management, administrative support) earn EV equal to PV each period, so their SPI is always 1.0 and they mask real performance.
A project sponsor asks why CPI and SPI are used together rather than separately. The best answer is:
Answer: CPI reveals cost efficiency while SPI reveals schedule efficiency; together they provide a complete performance picture and enable better forecasting
CPI and SPI measure different performance dimensions — cost and schedule — and their combined use gives a comprehensive view of project health and supports accurate forecasting.