Chapter 15

Question 1

If the schedule variance is positive and the cost variance is negative, the project’s status is:
Over budget and behind schedule
Over budget and ahead of schedule
Under budget and behind schedule
Under budget and ahead of schedule

Answer 1

Under budget and ahead of schedule

Question 2

The EVMS term that represents the value of work actually accomplished is:
PV
EV
AC
BAC

Answer 2

EV

Question 3

Which of the following terms is used to determine the trend on cost?
CV
EAC
CPI
AC

Answer 3

CPI

Question 4

If PV = $100, EV = $200 and AC = $300, the status is:
Over budget and behind schedule
Over budget and ahead of schedule
Under budget and behind schedule
Under budget and ahead of schedule

Answer 4

Over budget and ahead of schedule

Question 5

If SPI = 1.05 and CPI = 0.96, the project’s trend is:
Over budget and behind schedule
Over budget and ahead of schedule
Under budget and behind schedule
Under budget and ahead of schedule

Answer 5

Over budget and ahead of schedule

Question 6

Consider the following: BAC = $1000, VAC = -$200 , and AC = $400. Therefore EV = \_\_\_\_\_.
$ 480
$ 600
$ 800
Cannot be determined

Answer 6

Cannot be determined

Question 7

Consider the following: BAC = $1000, VAC = -$200, and AC = $400. Therefore, SV = \_\_\_\_\_.
$ 480
$ 600
$ 800
Cannot be determined

Answer 7

Cannot be determined

Question 8

The difference between the cost baseline and the contracted cost is the:
Cost at completion
Management reserve
Profit
Cost of scope changes

Answer 8

Management reserve

Question 9

The best source of revenue for a customer-requested scope change is:
A customer-funded contract amendment
Management reserve
Undistributed budget
Profits

Answer 9

A customer-funded contract amendment

Question 10

The form that is used to establish charge numbers is the:
Responsibility Assignment matrix
Work authorization form
Work package
Cost account change notice

Answer 10

Work authorization form

Question 11

The weakness in all of earned value measurement is the way we calculate:
PV
EV
AC
EAC

Answer 11

EV

Question 12

The best method to price out a work package is to use the:
Average departmental labor rate
Average pay grade labor rate
Actual salary of the workers assuming they are
Statistical data from the Payroll Department

Answer 12

Actual salary of the workers assuming they are

Question 13

Which of the following escalation factors are usually paid for with funds from the management reserve?
Salaries
Overhead rates
Material costs
All of the above

Answer 13

All of the above

Question 14

A common cause for a favorable SV but unfavorable CV might be:
Using lower salaried workers
Using overtime
Using less expensive raw materials
All of the above

Answer 14

Using overtime

Question 15

A common cause for a favorable CV but unfavorable SV might be:
Too many workers on the project
Too few workers on the project
Crashing the project
Use of overtime

Answer 15

Too few workers on the project

Question 16

An S-Curve plots:
Cumulative cost as a function of time
Schedule variance as a function of time
Work package schedules as a function of time
None of the above

Answer 16

Cumulative cost as a function of time

Question 17

If PV > AC, then we are spending less than the plan called for but we do not know if that’s good or bad without having a value for EV.
True
False

Answer 17

True

Question 18

Earned value measurement systems must be capable of:
Measuring resources consumed
Measuring status and accomplishment
Provide a basis for diagnosis and replanning
All of the above

Answer 18

All of the above

Question 19

The person or group with greatest ability to influence cost at project initiation is:
The customer / owner
The project manager
The project team
The users

Answer 19

The customer / owner

Question 20

At project initiation:
Few cost reduction opportunities exist and the cost of each change is large
Few cost reduction opportunities exist and the cost of each change is low
Many cost reduction opportunities exist and the cost of each change is high
Many cost reduction opportunities exist and the of each change is low

Answer 20

Many cost reduction opportunities exist and the of each change is low

Question 21

The establishment of all of the charge numbers for a project is called the:
Work package codes
Code of accounts
Summation of charge numbers
Cost accounts

Answer 21

Code of accounts

Question 22

Work that does not lend itself to subdivision into discrete scheduled increments of work, such as project support, is called:
Measurable effort
Level of effort
Discrete estimates
Work package effort

Answer 22

Level of effort

Question 23

Variance envelopes are usually established because:
All cost variances must be accounted for and explained
Not all cost variances must be explained even though they exist
All schedule variances must be explained
All cost overruns require sponsor authorization

Answer 23

Not all cost variances must be explained even though they exist

Question 24

The 50-50 rule is a technique used to determine:
EV
EAC
CPI
VAC

Answer 24

EV

Question 25

In which type of project report would we most likely find EAC and ETC?
Performance
Status
Forecast
Exception

Answer 25

Forecast