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Question 1. Which of the following best defines Earned Value (EV) in Earned Value Management? A) The authorized budget for work scheduled to be completed. B) The actual cost incurred for work performed. C) The budgeted cost of work actually performed. D) The total planned budget for the entire project. Answer: C Explanation: EV (also called BCWP) represents the value of work that has been completed, expressed in terms of the budget assigned to that work. Question 2. Planned Value (PV) is synonymous with which term? A) Actual Cost of Work Performed (ACWP) B) Budgeted Cost of Work Scheduled (BCWS) C) Budgeted Cost of Work Performed (BCWP) D) Estimate at Completion (EAC) Answer: B Explanation: PV is the budgeted cost of work scheduled to be completed by a specific date, also called BCWS. Question 3. In Earned Value terminology, what does the acronym BAC stand for? A) Budgeted Allocation Cost B) Baseline Actual Cost C) Budget at Completion D) Baseline at Completion Answer: C Explanation: BAC is the total planned budget for the entire project or a control account.
Question 4. Which formula correctly calculates Cost Variance (CV)? A) CV = PV – AC B) CV = EV – AC C) CV = EV – PV D) CV = AC – BAC Answer: B Explanation: CV measures the difference between earned value and actual cost; a positive CV indicates under‑budget performance. Question 5. A project has EV = $80,000 and AC = $100,000. What is the Cost Variance and its interpretation? A) CV = $20,000, favorable B) CV = – $20,000, unfavorable C) CV = $20,000, unfavorable D) CV = – $20,000, favorable Answer: B Explanation: CV = EV – AC = $80,000 – $100,000 = – $20,000, indicating the project is over budget. Question 6. Which index indicates cost efficiency and is calculated as EV divided by AC? A) Schedule Performance Index (SPI) B) Cost Performance Index (CPI) C) Variance at Completion (VAC) D) Estimate to Complete (ETC) Answer: B Explanation: CPI = EV / AC; values >1 mean cost efficiency, values <1 mean cost inefficiency.
Question 10. Which of the following statements about the Schedule Performance Index (SPI) is correct? A) SPI = AC / EV B) SPI = PV / EV C) SPI = EV / PV D) SPI = BAC / AC Answer: C Explanation: SPI = EV / PV; values >1 indicate the project is progressing faster than planned. Question 11. If SPI = 0.75, the project is: A) 25 % ahead of schedule. B) 25 % behind schedule. C) On schedule. D) 75 % over budget. Answer: B Explanation: SPI < 1 means work is being performed slower than planned; 0.75 indicates 25 % behind schedule. Question 12. Which of the following is NOT a typical component of a Work Breakdown Structure (WBS)? A) Control Accounts B) Work Packages C) Activity Duration Estimates D) Project Charter Answer: D Explanation: The Project Charter is a high‑level initiating document, not a WBS element.
Question 13. A Control Account (CA) is best described as: A) The lowest level of the WBS where work is performed. B) A management control point integrating scope, schedule, and cost. C) The total budget for the entire project. D) A resource allocation matrix. Answer: B Explanation: A CA is a point where scope, budget, and schedule are combined for performance measurement. Question 14. Which of the following EVM earning rules assigns 0 % value at start and 100 % at completion? A) 0/100 Rule B) 50/50 Rule C) Fixed Formula Rule D) Physical Measurement Rule Answer: A Explanation: The 0/100 rule gives no credit until a task is fully completed. Question 15. The 50/50 rule assigns which percentages of value to a short‑duration task? A) 0 % at start, 100 % at finish B) 25 % at start, 75 % at finish C) 50 % at start, 50 % at finish D) 100 % at start, 0 % at finish Answer: C Explanation: The 50/50 rule splits earned value evenly between start and completion.
Question 19. If a project’s BAC = $500,000 and its Management Reserve = $50,000, the total budget (including MR) is: A) $450, B) $500, C) $550, D) $600, Answer: C Explanation: Total budget = BAC + MR = $500,000 + $50,000 = $550,000. Question 20. Which formula represents the original (simple) method for calculating Estimate at Completion (EAC)? A) EAC = AC + (BAC – EV) B) EAC = BAC / CPI C) EAC = AC + ETC D) EAC = AC + (BAC – EV) / (CPI × SPI) Answer: C Explanation: The simple method adds the actual cost to the estimate to complete. Question 21. Assuming future work will be performed at the budgeted rate, which EAC formula is appropriate? A) EAC = AC + (BAC – EV) B) EAC = BAC / CPI C) EAC = AC + ETC / SPI D) EAC = BAC – VAC Answer: A Explanation: This scenario assumes no further variance, so remaining work is budgeted (BAC – EV).
Question 22. A project’s BAC = $250,000, EV = $150,000, and CPI = 0.8. What is the EAC using the “typical variance” formula (CPI continues)? A) $312, B) $200, C) $250, D) $187, Answer: A Explanation: EAC = BAC / CPI = $250,000 / 0.8 = $312,500. Question 23. Which EAC formula incorporates both cost and schedule performance indices? A) EAC = AC + (BAC – EV) B) EAC = BAC / (CPI × SPI) C) EAC = AC + (BAC – EV) / (CPI × SPI) D) EAC = AC + ETC × SPI Answer: C Explanation: This formula adjusts the remaining budget by both CPI and SPI. Question 24. Variance at Completion (VAC) is calculated as: A) VAC = EAC – BAC B) VAC = BAC – EAC C) VAC = AC – EV D) VAC = PV – EV Answer: B Explanation: VAC = BAC – EAC; a positive VAC indicates expected savings.
Question 28. Which of the following statements best describes “Earned Value” for a work package that is 40 % complete, with a budgeted cost of $25,000? A) EV = $10, B) EV = $15, C) EV = $20, D) EV = $25, Answer: A Explanation: EV = % complete × budget = 0.40 × $25,000 = $10,000. Question 29. Which performance index would you examine to assess whether a project is spending money efficiently? A) SPI B) CPI C) VAC D) ETC Answer: B Explanation: CPI measures cost efficiency (earned value per dollar spent). Question 30. A project’s SPI = 1.2 and CPI = 0.95. Which statement is most accurate? A) The project is ahead of schedule and under budget. B) The project is ahead of schedule but over budget. C) The project is behind schedule and under budget. D) The project is behind schedule and over budget. Answer: B Explanation: SPI > 1 indicates ahead of schedule; CPI < 1 indicates cost overrun. Question 31. Which of the following is NOT a valid reason to adjust the PMB?
A) Approved change request. B) Unforeseen scope creep without formal approval. C) Re‑baselining after major scope change. D) Management decision after stakeholder consensus. Answer: B Explanation: Scope changes must be formally approved; informal creep should not alter the baseline. Question 32. Which EVM metric would you use to forecast the total project duration? A) CPI B) SPI C) VAC D) ETC (duration) Answer: D Explanation: ETC (duration) estimates the remaining time; combined with elapsed time it forecasts total duration. Question 33. In EVM, “Estimate to Complete” (ETC) represents: A) Total budget at project start. B) Forecasted cost to finish remaining work. C) Difference between BAC and EV. D) The original contract price. Answer: B Explanation: ETC is the cost needed to complete the remaining work. Question 34. Which of the following is a typical source of variance that can cause a negative Cost Variance?
A) EV > PV
B) EV = PV
C) EV < PV
D) EV = 0
Answer: B Explanation: On‑schedule performance yields EV equal to PV. Question 38. A project has the following data: BAC = $800,000, EV = $400,000, AC = $500,000, PV = $450,000. What is the Estimate at Completion using the “CPI only” method? A) $888, B) $800, C) $720, D) $1,000, Answer: A Explanation: CPI = EV/AC = 0.8. EAC = BAC / CPI = $800,000 / 0.8 = $1,000,000. (Oops, correction: Actually $800,000 / 0.8 = $1,000,000, which matches option D.) Answer: D Explanation: Using CPI only, EAC = BAC / CPI = $800,000 / 0.8 = $1,000,000. Question 39. Which of the following statements about “Variance at Completion” (VAC) is correct? A) VAC = AC – EV. B) Positive VAC indicates expected cost underrun. C) VAC is calculated before any actual costs are incurred. D) VAC is the same as CPI. Answer: B
Explanation: VAC = BAC – EAC; a positive result means the project is forecasted to finish under budget. Question 40. Which of the following is considered a “performance baseline” in Earned Value Management? A) The list of all project risks. B) The approved schedule and cost plan (PMB). C) The project charter. D) The stakeholder register. Answer: B Explanation: The performance baseline is the approved integrated scope, schedule, and cost plan. Question 41. In EVM, which of the following would cause the Schedule Performance Index (SPI) to increase? A) An increase in actual cost without additional earned value. B) Completion of work ahead of the planned schedule. C) A reduction in the total budget (BAC). D) Adding more contingency reserves. Answer: B Explanation: Completing work earlier raises EV relative to PV, boosting SPI. Question 42. Which of the following is a primary advantage of using Earned Value Management over traditional cost tracking? A) It eliminates the need for a project schedule. B) It provides a single metric that integrates cost, schedule, and scope. C) It requires no baseline to be established.
Answer: C Explanation: When both cost and schedule performance affect future work, the combined formula is used. Question 46. Which of the following is NOT a typical input required to calculate Earned Value metrics? A) Planned Value (PV) B) Actual Cost (AC) C) Resource Utilization Rate D) Earned Value (EV) Answer: C Explanation: Resource Utilization Rate is not a direct input for EV calculations. Question 47. A project has a BAC of $600,000, EV of $300,000, and PV of $350,000. What does the Schedule Variance indicate? A) SV = $50,000, ahead of schedule. B) SV = – $50,000, behind schedule. C) SV = $50,000, behind schedule. D) SV = – $50,000, ahead of schedule. Answer: B Explanation: SV = EV – PV = $300,000 – $350,000 = – $50,000, indicating the project is behind schedule. Question 48. Which of the following best describes “Estimate to Complete” (ETC) when the project is expected to continue at the same CPI as to date? A) ETC = (BAC – EV) / CPI B) ETC = BAC – AC
C) ETC = AC + (BAC – EV)
D) ETC = (BAC – EV) × CPI
Answer: A Explanation: When future performance mirrors current CPI, remaining work cost is adjusted by dividing the remaining budget by CPI. Question 49. In the context of EVM, “Baseline Change Control” is required when: A) A work package is completed ahead of schedule. B) An authorized change modifies scope, schedule, or cost. C) Actual costs exceed earned value. D) The project manager updates the risk register. Answer: B Explanation: Baseline changes must be authorized through a formal change control process. Question 50. Which of the following is an example of a “Control Account” deliverable? A) Project charter B) Detailed design specification for subsystem X C) Monthly status report D] Risk mitigation plan Answer: B Explanation: A control account ties a specific deliverable (e.g., detailed design) to budget and schedule for performance measurement. Question 51. Which EVM metric would you examine to determine if the remaining work is expected to be completed within the original budget? A) SV B) CPI
A) 0.
B) 1.
C) 0.
D) 1.
Answer: A Explanation: SPI = EV / PV = $180,000 / $200,000 = 0.90. Question 55. Which of the following best explains why a project might have a positive Cost Variance but a negative Schedule Variance? A) The project is spending less than budgeted but is behind schedule. B) The project is over budget but ahead of schedule. C) Both cost and schedule are on target. D) The project has no earned value yet. Answer: A Explanation: Positive CV indicates under‑budget; negative SV indicates behind schedule. Question 56. Which of the following is the primary purpose of the Management Reserve? A) To fund approved scope changes. B) To cover unforeseen work within the original scope. C) To increase the project's profit margin. D) To reimburse contractors for overtime. Answer: B Explanation: Management Reserve is set aside for unexpected but in‑scope work. Question 57. In Earned Value Management, which of the following would cause the Earned Value to increase without any actual cost being incurred? A) Re‑baselining the project budget upward.
B) Recording progress on a work package using the 0/100 rule after it is completed. C) Adding a contingency reserve to the budget. D) Updating the risk register. Answer: B Explanation: Completing a work package raises EV; no cost is recorded until the work is performed. Question 58. Which of the following is NOT a typical output of an Earned Value Management report? A) CPI and SPI trends. B) Detailed resource leveling schedule. C) Forecasted EAC and VAC. D) Variance analysis (CV, SV). Answer: B Explanation: Resource leveling is a scheduling activity, not a standard EVM report output. Question 59. When using the “50/50 Rule,” how much earned value is recognized at the start of a short‑duration task? A) 0 % B) 25 % C) 50 % D) 100 % Answer: C Explanation: The 50/50 rule assigns 50 % of the task’s budget at start and the remaining 50 % at completion.
