Project Management Earned Value Management (EVM) 2

Question 1

A project has a BAC of $200,000, EV of $80,000, and AC of $100,000. What is the Cost Performance Index (CPI)?

Accepted Answer

0.80

Answer

CPI = EV / AC = $80,000 / $100,000 = 0.80, meaning you are getting $0.80 of value for every $1 spent.

Question 2

Which EVM metric would a project manager use to predict the total cost at project completion if current cost performance continues?

Accepted Answer

EAC = BAC / CPI

Answer

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

Question 3

A project's SPI is 1.15. What does this indicate?

Accepted Answer

The project is ahead of schedule

Answer

SPI > 1.0 means the project is ahead of schedule, earning more value than planned for the time elapsed.

Question 4

The Estimate to Complete (ETC) assumes remaining work will be done at the budgeted rate. Which formula represents this?

Accepted Answer

ETC = BAC - EV

Answer

ETC = BAC - EV is used when past variances are atypical and future work is expected to proceed at the original budgeted rate.

Question 5

What does a negative Schedule Variance (SV) tell a project manager?

Accepted Answer

The project has accomplished less work than planned

Answer

SV = EV - PV; a negative SV means EV < PV, so less work has been accomplished than was planned for this point in time.

Project Management Practice Test