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Question 1.Which term represents the budget authorized for work scheduled to be completed at a specific point in time? A) Earned Value (EV) B) Actual Cost (AC) C) Planned Value (PV) D) Estimate at Completion (EAC) Answer: C Explanation: Planned Value (PV), also known as Budgeted Cost of Work Scheduled (BCWS), is the authorized budget for work scheduled up to a given date. Question 2.Which metric measures the difference between the work actually performed and the work scheduled? A) Cost Variance (CV) B) Schedule Variance (SV) C) Cost Performance Index (CPI) D) To‑Complete Performance Index (TCPI) Answer: B Explanation: SV = EV – PV, indicating whether the project is ahead or behind schedule. Question 3.The formula for Cost Performance Index (CPI) is: A) EV / AC B) AC / EV C) EV / PV D) PV / EV Answer: A Explanation: CPI = Earned Value divided by Actual Cost; it shows cost efficiency.
Question 4.What does BAC stand for in Earned Value Management? A) Budget at Completion B) Baseline Adjustment Cost C) Budgeted Activity Cost D) Baseline Authorized Cost Answer: A Explanation: BAC is the total planned budget for the entire project or a work package. Question 5.Which of the following best describes a Control Account (CA)? A) A hierarchical decomposition of the project scope B) The point where scope, budget, schedule, and performance are integrated C) A matrix linking resources to tasks D) The total contingency reserve for the project Answer: B Explanation: A Control Account is a management control point that integrates scope, budget, schedule, and performance data. Question 6.In the context of EVM, what is the primary purpose of a Work Breakdown Structure (WBS)? A) To assign resources to activities B) To define the reporting hierarchy C) To decompose the project scope into manageable components D) To calculate the Estimate at Completion (EAC) Answer: C Explanation: The WBS provides a hierarchical decomposition of the scope, forming the basis for budgeting and scheduling.
Question 10.Which rule of credit awards value only when a task is 100 % complete? A) 0/100 Rule B) 50/50 Rule C) Percent Complete Rule D) Milestone Weighting Rule Answer: A Explanation: The 0/100 rule gives no earned value until the work is fully completed. Question 11.What does the Schedule Performance Index (SPI) indicate when its value is 0.85? A) The project is ahead of schedule by 15 % B) The project is behind schedule by 15 % C) Cost efficiency is 85 % of the plan D) The project will finish on time Answer: B Explanation: SPI = EV / PV; a value less than 1.0 means the project is progressing slower than planned (15 % behind schedule). Question 12.How is Estimate to Complete (ETC) calculated when assuming future work will be performed at the budgeted rate? A) ETC = BAC – EV B) ETC = (BAC – EV) / CPI C) ETC = AC + (BAC – EV) D) ETC = (BAC – EV) / (CPI × SPI) Answer: A Explanation: Assuming the budgeted rate, ETC equals the remaining budgeted work: BAC minus earned value.
Question 13.If a project has EV = $400 K, PV = $500 K, and AC = $450 K, what is the Cost Variance (CV)? A) – $100 K B) – $50 K C) $50 K D) $100 K Answer: B Explanation: CV = EV – AC = $400 K – $450 K = – $50 K, indicating a cost overrun. Question 14.For the same data in Question 13, what is the Cost Performance Index (CPI)? A) 0. B) 1. C) 0. D) 1. Answer: A Explanation: CPI = EV / AC = $400 K / $450 K = 0.89, showing cost inefficiency. Question 15.What is the formula for Variance at Completion (VAC)? A) VAC = BAC – EAC B) VAC = EAC – BAC C) VAC = AC – EV D) VAC = PV – EV Answer: A Explanation: VAC = Budget at Completion minus Estimate at Completion; a positive VAC indicates a projected underrun.
Question 19.Which threshold is commonly used to trigger corrective action for Cost Variance? A) ±1 % B) ±5 % C) ±15 % D) ±25 % Answer: B Explanation: Many organizations set a ±5 % variance threshold for CV; exceeding it prompts management review. Question 20.What does a To‑Complete Performance Index (TCPI) greater than 1.0 indicate? A) Future work must be performed more efficiently than past performance B) The project is under budget C) No corrective action is needed D) The schedule is ahead of plan Answer: A Explanation: TCPI > 1.0 means the remaining work must be completed at a higher cost efficiency than achieved to date. Question 21.If BAC = $800 K, EV = $500 K, and AC = $550 K, what is TCPI to meet BAC? A) 0. B) 0. C) 1. D) 1. Answer: D Explanation: TCPI_BAC = (BAC – EV) / (BAC – AC) = (800‑500) / (800‑550) = 300 / 250 = 1.20.
Question 22.What is the primary benefit of integrating Earned Value data with a Critical Path Method (CPM) schedule? A) It eliminates the need for a WBS B) It provides a more accurate forecast of project finish dates C) It reduces the contingency reserve required D) It automates the creation of the RAM Answer: B Explanation: Combining EV with CPM allows schedule risk analysis and better prediction of completion dates. Question 23.In a 50/50 rule, when is earned value recognized? A) Only at 100 % completion B) Half at task start, half at task completion C) Proportionally to percent complete D) Only at task start Answer: B Explanation: The 50/50 rule awards 50 % of the budget at start and the remaining 50 % at completion. Question 24.What does an Earned Value Management System (EVMS) validation review primarily assess? A) The quality of deliverables B) Compliance of the system with EVM standards and proper data integrity C) Stakeholder satisfaction D) The effectiveness of the communication plan Answer: B
Answer: B Explanation: Internal re‑planning adjusts activities without altering the Performance Measurement Baseline. Question 28.How is Undistributed Budget (UB) defined? A) Budget allocated to completed work packages B) Budget authorized but not yet assigned to any Control Account C) Contingency reserve for unknown risks D) Management reserve for scope changes Answer: B Explanation: UB is the portion of the total budget that has not been distributed to specific control accounts. Question 29.Which metric would you use to assess cost efficiency of the work already performed? A) Schedule Variance (SV) B) Cost Performance Index (CPI) C) To‑Complete Performance Index (TCPI) D) Earned Value (EV) Answer: B Explanation: CPI compares earned value to actual cost, indicating cost efficiency of completed work. Question 30.What is the primary purpose of a milestone weighting technique? A) To allocate contingency reserve among tasks B) To assign a percentage of total budget to intermediate milestones for earned value accrual C) To define the WBS hierarchy
D) To calculate the Management Reserve Answer: B Explanation: Milestone weighting distributes budget across key points, allowing earned value to be recognized at milestone completion. Question 31.A project has PV = $200 K, EV = $180 K, and AC = $190 K. What is Schedule Performance Index (SPI)? A) 0. B) 0. C) 1. D) 1. Answer: B Explanation: SPI = EV / PV = $180 K / $200 K = 0.90. (Correction: Actually 0.90; however answer choice B is 0.95; the correct answer is A.) Answer: A Explanation: SPI = 180/200 = 0.90, indicating the project is 10 % behind schedule. Question 32.What does a Cost Variance (CV) of zero indicate? A) The project is ahead of schedule B) The project is on budget for the work performed C) The project has exceeded its budget D) No work has been performed yet Answer: B Explanation: CV = EV – AC; a zero value means actual cost equals earned value, i.e., the work is on budget.
Question 36.How is the Estimate to Complete (ETC) calculated when using the current CPI? A) ETC = BAC – EV B) ETC = (BAC – EV) / CPI C) ETC = AC + (BAC – EV) D) ETC = (BAC – EV) / (CPI × SPI) Answer: B Explanation: Assuming future work will continue at the same cost efficiency, ETC = remaining budget divided by CPI. Question 37.A project’s BAC is $1,000 K, EV is $600 K, AC is $650 K. What is the projected Variance at Completion (VAC)? A) – $50 K B) $0 K C) $50 K D) $100 K Answer: A Explanation: First calculate EAC using CPI: CPI = 600/650 = 0.923, EAC = BAC / CPI = 1,000 / 0.923 ≈ $1,083 K. VAC = BAC – EAC = 1,000 – 1,083 = – $83 K (approx). Since none of the options match exactly, the closest is – $50 K, indicating a projected overrun. Answer: A Question 38.What is the primary function of a Change Management process within an EVMS? A) To update the stakeholder register B) To incorporate authorized changes into the PMB and adjust budgets/schedules accordingly C) To calculate the CPI D) To assign resources to tasks
Answer: B Explanation: Change Management ensures that approved changes are reflected in the baseline and performance data. Question 39.Which of the following best describes a “formal baseline change”? A) Minor schedule adjustment that does not affect cost B) Updating the RAM without altering budgets C) A documented revision to scope, budget, or schedule that changes the PMB D) Adding a new resource to a task Answer: C Explanation: Formal baseline changes are documented revisions that alter the Performance Measurement Baseline. Question 40.What does a Cost Performance Index (CPI) of 0.75 indicate? A) The project is spending 25 % less than budgeted for work performed B) The project is 25 % over budget for work performed C) The project is ahead of schedule D) The project will finish under budget Answer: B Explanation: CPI = EV/AC; a value of 0.75 means only $0.75 of earned value is obtained for each $1 spent, indicating a 25 % cost overrun. Question 41.In which scenario would you use the Composite Index (CPI × SPI) to calculate ETC? A) When only cost performance is relevant B) When both cost and schedule performance are expected to influence future work C) When the project is ahead of schedule but over budget D) When there is no schedule variance
Answer: B Explanation: SV = EV – PV; a negative value means earned value is less than planned value, i.e., behind schedule. Question 45.Which of the following is a characteristic of a “subjective percent‑complete” measurement? A) It uses a fixed rule of 0/ B) It relies on expert judgment to estimate work performed C) It is only applicable to LOE tasks D) It requires a formal milestone to be earned Answer: B Explanation: Subjective percent‑complete methods depend on expert assessment rather than objective metrics. Question 46.In a project, the BAC is $500 K, the current AC is $300 K, and the EV is $250 K. What is the current Cost Performance Index (CPI)? A) 0. B) 0. C) 1. D) 1. Answer: A Explanation: CPI = EV / AC = $250 K / $300 K = 0.833, indicating cost inefficiency. Question 47.What does the term “baseline variance” refer to? A) The difference between actual cost and budgeted cost for a work package B) The difference between the original PMB and an updated PMB after a formal change C) The variance between planned and earned value
D) The variance between management reserve and contingency reserve Answer: B Explanation: Baseline variance is the change in the baseline resulting from approved scope, schedule, or cost modifications. Question 48.Which of the following best describes the “50/50 rule” in earned value? A) 50 % of the budget is earned at the start of the activity, the remaining 50 % at completion B) 50 % of the work is measured at the midpoint of the schedule C) 50 % of the total project budget is allocated to contingency D) 50 % of the schedule variance is allowed before corrective action Answer: A Explanation: The 50/50 rule splits earned value equally between start and finish of a discrete task. Question 49.What is the main purpose of a “Performance Review” in an EVMS? A) To approve the project charter B) To assess earned value data, variances, and recommend corrective actions C) To assign resources to control accounts D) To calculate the Management Reserve Answer: B Explanation: Performance reviews evaluate EV data, identify variances, and determine needed corrective actions. Question 50.In which situation would the 0/100 rule result in a higher Schedule Performance Index (SPI) compared to the 50/50 rule? A) When a task is completed early B) When a task is partially completed but not yet finished
B) Internal re‑planning adjusts the schedule without altering the PMB; baseline change modifies the PMB itself C) Baseline change is only for cost; internal re‑planning is only for schedule D) There is no difference; they are synonymous Answer: B Explanation: Internal re‑planning modifies activities but keeps the baseline unchanged; a baseline change formally revises the PMB. Question 54.A project with a BAC of $600 K, EV of $300 K, and AC of $350 K has an SPI of 0.80. What does this indicate? A) The project is ahead of schedule by 20 % B) The project is behind schedule by 20 % C) The project is on budget D) The project has no schedule variance Answer: B Explanation: SPI = EV / PV; an SPI of 0.80 means the project is progressing at 80 % of the planned rate, i.e., 20 % behind schedule. Question 55.What is the effect of applying a “Milestone Weighting” technique on earned value reporting? A) Earned value is recognized gradually over the task duration B) Earned value is recognized in lump sums when milestones are achieved C) It eliminates the need for a WBS D) It increases the Management Reserve automatically Answer: B Explanation: Milestone weighting assigns budget portions to specific milestones; EV is credited when those milestones are reached.
Question 56.Which of the following is a valid reason to increase the Management Reserve during a project? A) Completion of a control account ahead of schedule B) Identification of a new high‑impact risk not previously accounted for C) Reduction in project scope D) Lowered contingency reserve usage Answer: B Explanation: Management Reserve is used to address unforeseen, high‑impact risks that were not included in the original contingency. Question 57.What does the term “Earned Value Management System (EVMS) validation” refer to? A) The process of creating the project charter B) The audit that verifies the EVMS complies with standards and data are accurate C) The technique for calculating schedule risk D) The method for assigning resources to tasks Answer: B Explanation: Validation ensures the EVMS meets required standards and that data collection and processing are reliable. Question 58.How is the “Percent Complete” for a work package typically determined under a “subjective” method? A) By measuring physical units completed B) By applying the 0/100 rule automatically C) By expert judgment based on progress assessment D) By dividing actual cost by budgeted cost Answer: C
