Project Management Earned Value Management (EVM) 5 — Questions and Answers
Question 1: A project has EV = $150,000, PV = $120,000, and AC = $140,000. What is the Schedule Variance (SV)?
- $30,000 (Correct answer)
- -$30,000
- $10,000
- -$10,000
Correct answer: $30,000
SV = EV - PV = $150,000 - $120,000 = +$30,000, meaning the project has accomplished $30,000 more work than planned.
Question 2: An EVM reporting system shows EAC = $950,000 and BAC = $900,000. What is the VAC?
- -$50,000 (Correct answer)
- +$50,000
- $950,000
- $900,000
Correct answer: -$50,000
VAC = BAC - EAC = $900,000 - $950,000 = -$50,000, indicating a projected cost overrun of $50,000 at completion.
Question 3: Which EVM baseline is directly affected when the project manager formally approves a scope change through integrated change control?
- Performance Measurement Baseline (PMB) (Correct answer)
- Cost baseline only
- Schedule baseline only
- The project charter
Correct answer: Performance Measurement Baseline (PMB)
Approved scope changes update the PMB, which integrates scope, schedule, and cost — all three baselines may be adjusted.
Question 4: A project manager wants to use EVM but the work is highly repetitive with fixed unit costs. Which earned value technique is most appropriate?
- Units completed method (Correct answer)
- Percent complete method
- 0/100 method
- Level of effort method
Correct 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.
Question 5: What is the relationship between EVM and the Work Breakdown Structure (WBS)?
- EVM performance is measured at control accounts aligned to WBS elements (Correct answer)
- EVM replaces the WBS as the primary project planning tool
- EVM is applied only at the project summary level, not WBS levels
- The WBS is created after EVM baselines are established
Correct 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.
Question 6: Level of Effort (LOE) activities in EVM are characterized by which of the following?
- They have an SPI that always equals 1.0 and do not contribute meaningful schedule variance (Correct answer)
- They generate the most meaningful cost variance data
- They are the preferred method for measuring technical work packages
- They always use the 0/100 earning rule
Correct 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.
Question 7: A project sponsor asks why CPI and SPI are used together rather than separately. The best answer is:
- CPI reveals cost efficiency while SPI reveals schedule efficiency; together they provide a complete performance picture and enable better forecasting (Correct answer)
- Using both eliminates the need for status meetings with the team
- SPI is only valid when CPI is also above 1.0
- Together they replace the need for a risk register
Correct 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.
Project Management Earned Value Management (EVM) 5
A project has EV = $150,000, PV = $120,000, and AC = $140,000.
What is the Schedule Variance (SV)?