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PMI Aug 2024 Exam Prep > Earned Value > Flashcards

Earned Value Flashcards

1
Q

Which of the following terms in Earned Value Management (EVM) represents the value of the work that has actually been completed?

A. Planned Value (PV)

B. Earned Value (EV)

C. Actual Cost (AC)

D. Budget at Completion (BAC)

A

B. Earned Value (EV)

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2
Q

In Earned Value Management, which term is used to refer to the value of work that was planned to be accomplished by a certain point in time?

A. Actual Cost (AC)

B. Estimate at Completion (EAC)

C. Planned Value (PV)

D. Estimate to Completion (ETC)

A

C. Planned Value (PV)

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3
Q

Which term describes the actual amount of money spent on the project up to the current point?

A. Earned Value (EV)

B. Actual Cost (AC)

C. Budget at Completion (BAC)

D. Estimate at Completion (EAC)

A

B. Actual Cost (AC)

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4
Q

What does the Budget at Completion (BAC) represent in Earned Value Management?

A. The total budget allocated for the project

B. The revised final budget estimate for the project

C. The value of work that has been completed

D. The amount of money needed to complete the remaining work

A

A. The total budget allocated for the project

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5
Q

Which term represents the revised estimate of the total cost required to complete the project?

A. Estimate at Completion (EAC)

B. Earned Value (EV)

C. Planned Value (PV)

D. Estimate to Completion (ETC)

A

A. Estimate at Completion (EAC)

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6
Q

Question 6:

In Earned Value Management, which term is used to describe the amount of money required to complete the remaining work on the project?

A. Actual Cost (AC)

B. Estimate at Completion (EAC)

C. Estimate to Completion (ETC)

D. Planned Value (PV)

A

C. Estimate to Completion (ETC)

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7
Q

Which Earned Value Management term provides a measure of how much value has been gained for the work performed compared to what was planned?

A. Budget at Completion (BAC)

B. Earned Value (EV)

C. Actual Cost (AC)

D. Planned Value (PV)

A

B. Earned Value (EV)

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8
Q

You are managing a project and need to assess its schedule performance. The following data has been reported:

Planned Value (PV): $50k
Earned Value (EV): $45k
Actual Cost (AC): $47k
Using the Schedule Variance (SV) formula, what is the current schedule variance of the project?

A. $2,000 (Favorable)

B. $5,000 (Unfavorable)

C. $2,000 (Unfavorable)

D. $5,000 (Favorable)

A

B. $5,000 (Unfavorable)

Schedule Variance (SV) is calculated using the formula:

SV=EV−PV

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9
Q

What does Schedule Variance (SV) measure, and what is the formula?

A

measures performance by calculating the difference between EV(earned value) and PV (planned value)

SV=EV-PV
(project is on schedule with value of 0)

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10
Q

You are reviewing the performance of a project and have the following data:

Earned Value (EV): $60k
Planned Value (PV): $75k
Using the Schedule Performance Index (SPI) formula, what is the SPI for the project?

A. 0.80

B. 1.25

C. 1.50

D. 0.90

A

A. 0.80

Applying the formula:
SPI = EV/PV

(project is on schedule with value of 1.0+)

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11
Q

What does Schedule Performance Index measure, and what is the formula?

A

measures the efficiency by calculating the ratio of EV to PV:

SPI = EV/PV
(project is on schedule with value of 1.0+)

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12
Q

You are evaluating the cost efficiency of a project. You have the following data:

Earned Value (EV): $120k
Actual Cost (AC): $150k
To assess how efficiently the project is using its budgeted resources, calculate the Cost Performance Index (CPI).

A. 0.80

B. 1.25

C. 0.90

D. 1.00

A

A. 0.80
CPI = EV/AC

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13
Q

You are assessing the budget status of your project and have the following data:

Earned Value (EV): $90k
Actual Cost (AC): $85k
To determine if the project is currently on budget, calculate the Cost Variance (CV).

A. $5,000 (Surplus)

B. $5,000 (Deficit)

C. $10,000 (Surplus)

D. $10,000 (Deficit)

A

A. $5,000 (Surplus)

CV=EV−AC

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14
Q

Anna signed a contract to write a book. The book consists of 10 parts (Intro, 8 Chapters, Conclusion) and is to be completed by Nov 1st. Anna will be paid $25/hour, and she
estimates each of the 10 parts will take 200 hours to write.

Each completed WP (chapter) has an EV of $5,000. Also, Anna’s publisher agreed that partially completed sections can be
valued at $100/page. (earned value EV)

How much money has been paid to Anna to date? (actual cost AC)…

As of April 1st, Anna has finished the Introduction, Chapter 1, and 35 pages of Chapter 2. She has spent 650 hours writing.
* PV for April 1st ?
* EV as of April 1st ?
* AC as of April 1st ?

A

PV = $15,000
EV = $13,500
AC = $16,250

AC is 16,250 for hours worked, plus 3,500 for pages
EV earned for 2 chapters is currently $13,500
PV: 15k

CV = EV - AC
CV = 13,500 - 16,250 = -2,750
* CPI = EV / AC
CPI = 13,500 / 16,250 = .83

She’s behind schedule and over budget

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15
Q

What will the project cost in total?
Use Estimate At Completion (EAC)
Based on:
* CPI: current spending efficiency
* BAC: budget at completion
What is the formula for EAC?

A

EAC=BAC/CPI

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16
Q

How much more cost is required to complete the remainder of the project?
Use Estimate To Complete (ETC)
Based on:
* CPI
* AC – actual cost
What is the formula for ETC?

A

ETC=EAC-AC

17
Q

You are managing a project and have the following data for a particular period:

Planned Value (PV): $120,000
Earned Value (EV): $100,000
Actual Cost (AC): $110,000
Based on this data, answer the following questions:

What is the Schedule Variance (SV) of the project?
What is the Cost Performance Index (CPI) of the project?
Is the project ahead or behind schedule, and is it under or over budget?

A

SV = -$20,000 (The project is behind schedule.)

CPI = 0.91 (The project is over budget.)

18
Q

In a project, the planned value (PV) is $50,000, the earned value (EV) is
$45,000, and the actual cost (AC) is $48,000. What is the cost variance
(CV) and what does it indicate about the project?

A. CV = -$3,000; The project is under budget.

B. CV = $3,000; The project is under budget.

C. CV = -$3,000; The project is over budget.

D. CV = $3,000; The project is over budget.

A

C. CV = -$3,000; The project is over budget.

CV = EV-AC -> -3,000
CPI = EV/AC -> if top number is smaller than bottom number, we’re less than one which means we’re over budget.

45,000/48,000

Bottom line, we’ve spent more than we’ve earned.

Use these as logic and you can answer

19
Q

A project has a planned budget of $150,000 and is expected to last 6
months. At the end of 3 months, the earned value (EV) is $120,000,
and the actual cost (AC) is $130,000. What does it indicate about the project’s progress?

A. The project is under budget and behind schedule.

B. The project is over budget and behind schedule.

C. The project is under budget and ahead of schedule.

D. The project is over budget and ahead of schedule.

A

Answer: B, project is over budget and behind of schedule

Budget: CPI = EV/AC
CPI = .92
less than 1 means over budget

Schedule: SPI = EV/PV
SPI = .8
less than 1 means behind schedule

20
Q

A project has a planned budget of $150,000 and is expected to last 6
months. At the end of 3 months, the earned value (EV) is $120,000,
and the actual cost (AC) is $130,000. The CPI is .92. The SPI is 1.6. What is the Estimate at Completion.

A. 81,522

B. 93,750

C. 163,043

D. 280,000

A

Answer: C

Estimate at Completion:
EAC = BAC/CPI
(150/.92 = 163.0435)

21
Q

A project has a planned budget of $150,000 and is expected to last 6
months. At the end of 3 months, the earned value (EV) is $120,000,
and the actual cost (AC) is $130,000. The CPI is .92. The SPI is 1.6. What is the Estimate to Completion.

A) 20,000
B) 33,043
C) 130,000
D) 150,000

A

Answer: B

EAC = BAC/CPI
ETC = EAC— AC

EAC = 150k/.92 = 163,043
ETC = 163,043 - 130,000 = 33,043

22
Q

A project team is uncertain about the duration required for a software development task due to its complexity. They decide to use a technique that accounts for optimistic, pessimistic, and most likely estimates. Which estimating technique are they likely using?

A. Analogous Estimating

B. Parametric Estimating

C. Three-Point Estimating

D. Delphi Technique

A

C. Three-Point Estimating

23
Q

The maximum amount of time an activity can be delayed without
delaying the project is known as:

A. Lead
B. Lag
C. Free Float
D. Total Float

A

D. Total Float

24
Q

During the execution phase of a project, the project manager decides to fast track several critical activities to shorten the project schedule. What is the primary risk associated with fast tracking?

A. Increased project costs

B. Decreased project quality

C. Increased project scope

D. Increased project risk

A

D. Increased project risk

25
Q

1) ___________ A possibility of a positive or negative occurrence which could impact the project.
2) ___________ A condition indicating a risk is about to occur.
3) ___________ A current condition that may impact the project.

Issue
Risk
Trigger

A

1) Risk
2) Trigger
3) Issue

26
Q
A

PMI Aug 2024 Exam Prep (23 decks)

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