M&C: Cost Management

Question 1

The process of monitoring the status of the project to update project budget and manage changes to the cost baseline

Answer 1

Control Costs

Question 2

Budgeted value of work planned to be done

Answer 2

Planned Value (PV)

Question 3

Budgeted value of work actually completed

Answer 3

Earned Value (EV)

Question 4

Actual cost of work completed

Answer 4

Actual Cost (total) (AC)

Question 5

Total cost baseline +/- approved changes

Answer 5

Budget at Completion (BAC)

Question 6

Updated total cost forecast (based on progress)

Answer 6

Estimate at Completion (EAC)

Question 7

Expected costs remaining (now until end)

Answer 7

Estimate to Complete (ETC)

Question 8

Expected Variance over/under budget

Answer 8

Variance at Completion (VAC)

Question 9

The amount of budget deficit or surplus at a given point in time, expressed as the difference between the earned value and the actual cost

Negative (bad)
Positive (good)
Zero (on target)

Answer 9

Cost Variance

Question 10

A measure of schedule performance expressed as the difference between the earned value and the planned value

Negative (bad)
Positive (good)
Zero (on target)

Answer 10

Schedule Variance

Question 11

A measure of the cost efficiency of budgeted resources expressed as the ratio of EV to actual cost

Under 1 (bad)
Over 1 (good)
1 (on target)

Answer 11

Cost Performance Index

Question 12

Formula for Cost Variance

Answer 12

EV - AC

Question 13

Formula for Schedule Variance

Answer 13

EV - PV

Question 14

Formula for Cost Performance Index

Answer 14

EV / AC

Question 15

A measure of schedule efficiency expressed as the ratio of EV to PV

Under 1 (bad)
Over 1 (good)
1 (on target)

Answer 15

Schedule Performance Index

Question 16

Formula for Schedule Performance Index

Answer 16

EV / PV