Formula terminology

Question 1

CV

Answer 1

Cost Variance

Question 2

What is the definition of CV?

Answer 2

Provides cost performance of the
project. Helps determine the amount
of budget deficit or surplus at a given
point in time

Question 3

What is CV Formula

Answer 3

CV = EV – AC

Question 4

CPI

Answer 4

Cost Performance Index

Question 5

What is the definition of CPI

Answer 5

The measure of cost efficiency on a
project. The ratio of earned value to
actual cost.

Question 6

What is CPI Formula

Answer 6

CPI = EV / AC

Question 7

CPI Result Interpretation

Answer 7

<1 = over budget = over planned cost.
The project is getting <$1 for every $1
spent.
1 = on budget = on planned cost.
The project is getting $1 for every $1
spent.
>1 = under budget = under planned
cost. The project is getting >$1 for
every $1 spent.

Question 8

What is CV Result Interpretation?

Answer 8

Negative = over budget = over planned
cost
Zero = on budget = on planned cost
Positive = under budget = under
planned cost

Question 9

SV

Answer 9

Schedule Variance

Question 10

What is the definition of SV?

Answer 10

Provides schedule performance
of the project. Helps determine if
the project work is proceeding as
planned.

Question 11

What is the SV formula?

Answer 11

SV = EV – PV

Question 12

What is SV Interpretation?

Answer 12

Negative = behind schedule
Zero = on schedule
Positive = ahead of schedule

Question 13

SPI

Answer 13

Schedule Performance Index

Question 14

What is the definition of Schedule Performance Index

Answer 14

The measure of schedule efficiency
on a project. The ratio of earned value
to planned value. Used to determine
if a project is behind, on or ahead of
schedule. Can be used to help predict
when a project will be completed

Question 15

What is the SPI formula

Answer 15

SPI = EV / PV

Question 16

What is SPI Interpretation?

Answer 16

<1 = behind schedule. The project
is progressing at a slower rate than
originally planned.
1 = on schedule. The project is
progressing at the originally planned
rate.
>1 = ahead of schedule. The project
is progressing at a faster rate than
originally planned.

Question 17

EAC

Answer 17

Estimate at Completion

Question 18

What is the definition of EAC?

Answer 18

Expected final and total cost of a
project based on project performance.
Helps determine an estimate of the
total costs of a project based on actual
costs to date. There are several ways
to calculate EAC depending on the
current project situation and how the
actual work is progressing as compared
to the budget. Look for keywords in
the exam questions to determine what
assumptions were made

Question 19

Assumption: use this formula if the
current cost performance is expected
to remain the same for the remainder
of the project.

Answer 19

EAC = BAC / CPI

Question 20

Assumption: use this formula if the
original estimate was fundamentally
flawed or conditions have changed
and invalidated original estimating
assumptions

Answer 20

EAC = AC + Bottom-up ETC

Question 21

Assumption: use this formula if the
current cost variance is not expected
to occur again for the remainder of
the project, which means the original
budget is still reliable.

Answer 21

EAC = AC + (BAC – EV)

Question 22

Assumption: use this formula if
both the CPI and SPI influence the
remaining project work.

Answer 22

EAC = AC + [(BAC – EV) / (CPI * SPI)]

Question 23

Use this formula if no keywords could
be found.

Answer 23

ETC = EAC – AC

Question 24

What is the definition of ETC?

Answer 24

The expected cost needed to complete
all the remaining project work. Helps
predict what the final cost of the
project will be upon completion.
There are many ways to calculate
ETC depending on the assumptions
made. Look for keywords in the
exam questions to determine what
assumptions were made.

Question 25

Use this formula if no keywords could
be found.

Answer 25

ETC = EAC – AC

Question 26

A new estimate is developed when it
is thought that the original estimate
was flawed.

Answer 26

ETC

Question 27

Assumption: use this formula if
current variances are not expected
to occur again for the remainder of
the project, which means the original
budget is still reliable.

Answer 27

ETC = BAC – EV

Question 28

Assumption: use this formula if
both the CPI and SPI influence the
remaining project work

Answer 28

ETC = (BAC – EV) / (CPI * SPI)

Question 28

Assumption: use this formula if
current cost performance is expected
to remain the same for the remainder
of the project.

Answer 28

ETC = (BAC / CPI) – AC

Question 29

What is the definition of percent complete?

Answer 29

How much of the planned budget has
been completed?