PMBOK PMBOK Earned Value Management (EVM) Questions and Answers 2 — Questions and Answers
Question 1: A project has a Budget at Completion (BAC) of $500,000. After 60% of the work is completed, the Actual Cost (AC) is $350,000. What is the Cost Performance Index (CPI)?
- 0.86 (Correct answer)
- 1.17
- 0.71
- 1.00
Correct answer: 0.86
CPI = EV / AC = $300,000 / $350,000 = 0.86, indicating the project is over budget.
Question 2: If a project's Schedule Performance Index (SPI) is 1.15, what does this indicate?
- The project is ahead of schedule (Correct answer)
- The project is behind schedule
- The project is on schedule
- The project is over budget
Correct answer: The project is ahead of schedule
An SPI greater than 1.0 means the project is earning value faster than planned, indicating it is ahead of schedule.
Question 3: Which EVM metric represents the authorized budget assigned to scheduled work?
- Planned Value (PV) (Correct answer)
- Earned Value (EV)
- Actual Cost (AC)
- Budget at Completion (BAC)
Correct answer: Planned Value (PV)
Planned Value is the authorized budget assigned to work scheduled to be accomplished for a specific time period.
Question 4: A project manager calculates the Variance at Completion (VAC) as -$40,000. What does this mean?
- The project is expected to finish $40,000 over budget (Correct answer)
- The project is expected to finish $40,000 under budget
- The project is $40,000 behind schedule
- The project has saved $40,000 to date
Correct answer: The project is expected to finish $40,000 over budget
A negative VAC (BAC - EAC) indicates the project is expected to cost more than the original budget at completion.
Question 5: What is the formula for the To-Complete Performance Index (TCPI) based on the Budget at Completion?
- (BAC - EV) / (BAC - AC) (Correct answer)
- (BAC - AC) / (BAC - EV)
- (EAC - EV) / (EAC - AC)
- (BAC - EV) / (EAC - AC)
Correct answer: (BAC - EV) / (BAC - AC)
TCPI = (BAC - EV) / (BAC - AC) measures the cost performance required to meet the BAC with remaining resources.
Question 6: In EVM, what does a Cost Variance (CV) of zero signify?
- The project is exactly on budget (Correct answer)
- The project is exactly on schedule
- The project has no remaining work
- The project's CPI equals its SPI
Correct answer: The project is exactly on budget
A CV of zero means Earned Value equals Actual Cost, so the project has spent exactly what was planned for the work completed.
PMBOK PMBOK Earned Value Management (EVM) Questions and Answers 2
A project has a Budget at Completion (BAC) of $500,000.
After 60% of the work is completed, the Actual Cost (AC) is $350,000.
What is the Cost Performance Index (CPI)?