Finance

Question 0

What is EV?

Answer 0

EV is the value of work completed. It is the monetary value of the deliverables completed.

Question 1

What does EV stand for?

Answer 1

Earned Value

Question 2

What does SPI stand for?

Answer 2

Schedule Performance Index

Question 3

What is SPI?

Answer 3

Schedule Performance Index is another Earned Value term to understand if the project is on schedule. SPI = EV / PV.
SPI reflects only the project-to-date performance for the rest of the project. It is expressed as a number or two-digit decimal such as
.85 or 1.01.

Question 4

What does PC stand for?

Answer 4

Percent Complete

Question 5

What does CPI stand for?

Answer 5

Cost Performance Index

Question 6

What does SV stand for?

Answer 6

Schedule Variance

Question 7

What is the formula for SV?

Answer 7

SV = EV - PV

Schedule Variance = Earned Value minus Planned Value (or budgeted amount)

Question 8

What does CEAC stand for?

Answer 8

Calculated Estimate At Completion

Question 9

What does EAC stand for?

Answer 9

Estimate At Completion

Question 10

What does ETC stand for?

Answer 10

Estimate To Complete

Question 11

What is an accrual?

Answer 11

If you book costs to the ledger, but there is no billing to match it, the amount is an accrual. Example: You had $28,040 in project costs that were booked to the current month, but the customer was not invoiced for it. This created a revenue accrual.

Question 12

What is a revenue deferral?

Answer 12

A revenue deferral is the opposite of a revenue accrual. It is when revenue is billed but has not been earned. IBM: Cost deferrals must meet specific criteria and be approved.

Question 13

What is the formula for CEAC?

Answer 13

CEAC = BAC / CPI
BAC = Budget At Completion
CPI = Cost Performance Index = Earned Value (EV) / Actual Cost (AC)

Question 14

What is the formula for Gross Profit Margin

Answer 14

(1 - (cost / revenue)) x 100

Question 15

In the term, POC Accounting, what does POC stand for?

Answer 15

Percentage Of Completion

Question 16

What is POC Accounting?

Answer 16

Percentage of completion, or POC, accounting is a method of revenue recognition that can be used for fixed-price contracts that are longer than 3 months when there is no client acceptance required for deliverables. Percentage of completion, rather than milestones is used for revenue recognition.