Earned Value

Question 1

Planned value (PV)

Answer 1

Planned value (PV)

What the project should be worth.

Question 2

Earned value (EV)

Answer 2

Earned value (EV)

What the project is worth

Percent complete X BAC

Question 3

Actual cost (AC)

Answer 3

Actual cost (AC)

What the project has spent so far

Question 4

Budget at Completion (BAC)

Answer 4

Budget at Completion (BAC)

What the project budget is

Question 5

Cost variance (CV)

Answer 5

Cost variance (CV)

The difference between earned value and the actual costs

EV-AC

Positive – under budget
Negative – over budget

Question 6

Schedule variance (SV)

Answer 6

Schedule variance (SV)

The difference between earned value and planned value

EV-PV

Positive – ahead of schedule
Negative – behind schedule

Question 7

Variance at Completion (VAC)

Answer 7

Variance at Completion (VAC)

Projection of being over or under budget based on current performance

BAC-EAC

Positive – under budget
Negative – over budget

Question 8

Cost Performance Index (CPI)

Answer 8

Cost Performance Index (CPI)

Shows overall cost efficiency on the project.

EV/AC

Greater than 1 – under budget
Less than 1 – over budget

Question 9

Schedule Performance Index (SPI)

Answer 9

Schedule Performance Index (SPI)

Shows overall schedule adherence

EV/PV

Greater than 1 – ahead of schedule
Less than 1 – behind schedule

Question 10

Estimate at Completion (EAC)

Standard formula

Answer 10

Estimate at Completion (EAC) Standard formula

Forecasts final project costs based on current performance

BAC/CPI

Question 11

Estimate at Completion (EAC) Future work at planned costs formula

Answer 11

Estimate at Completion (EAC) Future work at planned costs formula

Forecasts final project costs based on
current performance

AC + BAC – EV

Question 12

Estimate at Completion (EAC) Initial costs estimates flawed

Answer 12

Estimate at Completion (EAC) Initial costs estimates flawed

Forecasts final project costs based on current performance

AC + Estimate for remainder of project

Question 13

Estimate at Completion (EAC) CPI and SPI affect remainder of project

Answer 13

Estimate at Completion (EAC) CPI and SPI affect remainder of project

Forecasts final project costs based on current performance

AC + [BAC-EV/(CPI x SPI)]

Question 14

Estimate to Complete

Answer 14

Estimate to Complete

Predict how much more the remainder of the project will costs

EAC-AC

Question 15

TCPI Utilizing BAC

Answer 15

TCPI Utilizing BAC

Predicts likelihood of reaching BAC

(BAC-EV)/(BACAC)

Greater than 1 – harder to
complete and meet BAC
Less than 1 – easier to complete
and meet BAC

Question 16

TCPI Utilizing EAC

Answer 16

TCPI Utilizing EAC

Predicts likelihood of reaching EAC

(BAC-EV)/(EACAC)

Greater than 1 – harder to
complete and meet EAC
Less than 1 – easier to complete
and meet EAC