Download PrepIQ Earned Value Foundation Ultimate Exam and more Exams Technology in PDF only on Docsity!
Ultimate Exam
Question 1. Which EVM term represents the authorized budget for the work scheduled to be performed up to a specific date? A) Actual Cost (AC) B) Earned Value (EV) C) Planned Value (PV) D) Budget at Completion (BAC) Answer: C Explanation: Planned Value (PV), also called Budgeted Cost of Work Scheduled (BCWS), is the budgeted amount for the work that should have been completed by the reporting date. Question 2. In Earned Value Management, the metric that indicates how much work has actually been accomplished, expressed in budget terms, is called: A) Actual Cost (AC) B) Earned Value (EV) C) Planned Value (PV) D) Variance at Completion (VAC) Answer: B Explanation: Earned Value (EV) or Budgeted Cost of Work Performed (BCWP) quantifies the value of work performed based on the budgeted cost of that work. Question 3. The formula for Cost Variance (CV) is: A) CV = PV – AC B) CV = EV – AC C) CV = EV – PV D) CV = BAC – EAC
Ultimate Exam
Answer: B Explanation: CV = EV – AC measures the difference between the value of work performed and the actual cost incurred; a positive CV indicates under-budget performance. Question 4. If a project has an EV of $80,000 and an AC of $100,000, what is the Cost Variance and its interpretation? A) –$20,000; the project is over budget B) $20,000; the project is under budget C) –$20,000; the project is under budget D) $20,000; the project is over budget Answer: A Explanation: CV = EV – AC = $80,000 – $100,000 = –$20,000, indicating the project has spent $20,000 more than the earned value (over-budget). Question 5. Schedule Variance (SV) is calculated as: A) SV = PV – EV B) SV = EV – AC C) SV = EV – PV D) SV = BAC – EAC Answer: C Explanation: SV = EV – PV measures the difference between the value of work performed and the value that was planned to be performed; a positive SV means ahead of schedule. Question 6. A project reports EV = $150,000, PV = $130,000. What does the Schedule Variance indicate? A) –$20,000; behind schedule
Ultimate Exam
B) SPI
C) VAC
D) ETC
Answer: B Explanation: Schedule Performance Index (SPI) = EV / PV; values >1 indicate work is proceeding faster than planned. Question 10. If EV = $90,000 and PV = $100,000, what is the SPI and its meaning? A) 0.90; schedule is behind plan B) 1.11; schedule is ahead of plan C) 0.90; schedule is ahead of plan D) 1.11; schedule is behind plan Answer: A Explanation: SPI = EV / PV = $90,000 / $100,000 = 0.90, indicating the project is progressing at 90 % of the planned rate (behind schedule). Question 11. The Budget at Completion (BAC) represents: A) The total actual cost incurred to date B) The approved total budget for the entire project C) The remaining budget after accounting for management reserve D) The forecasted cost at project completion Answer: B Explanation: BAC is the baseline budget for the whole project, against which performance is measured. Question 12. Which of the following statements about the Performance Measurement Baseline (PMB) is true?
Ultimate Exam
A) PMB includes the Management Reserve. B) PMB = BAC + MR. C) PMB is the approved integrated scope, schedule, and cost plan. D) PMB can be changed without a formal change request. Answer: C Explanation: The PMB is the baseline that integrates scope, schedule, and cost (BAC) and does not include the Management Reserve. Question 13. The Management Reserve (MR) is: A) Part of the PMB and used for scope changes. B) A contingency for known risks. C) A budget for unforeseen work within scope, not used in EVM calculations unless spent. D) Included in the Earned Value calculations for all work packages. Answer: C Explanation: MR is set aside for unknown work; it is not part of the baseline and is excluded from EVM metrics unless actually expended. Question 14. Which formula correctly calculates Estimate at Completion (EAC) when future work is expected to be performed at the original budgeted rate? A) EAC = AC + (BAC – EV) B) EAC = BAC / CPI C) EAC = AC + (BAC – EV) / (CPI × SPI) D) EAC = AC × CPI Answer: A Explanation: When future performance is expected to be on budget, the simple “remaining work” method adds actual cost to the remaining budget.
Ultimate Exam
B) 50/50 rule C) Weighted milestone rule D) Physical measurement rule Answer: A Explanation: The 0/100 rule gives no credit until the work package is completely finished. Question 18. The 50/50 rule is most appropriate for: A) Long-duration activities with measurable progress. B) Short-duration tasks where effort is split evenly between start and finish. C) Milestones that have no physical deliverable. D) Activities with significant risk exposure. Answer: B Explanation: The 50/50 rule allocates 50 % of the value at task start and the remaining 50 % at completion, useful for short tasks. Question 19. Which EVM technique uses a predetermined set of weighted percentages tied to specific physical milestones? A) 0/100 rule B) 50/50 rule C) Fixed formula/weighted milestones D) Earned schedule method Answer: C Explanation: Fixed-formula or weighted-milestone methods assign percentages (e.g., 25 % design complete) to measurable milestones. Question 20. In the context of EVM, a Work Package is:
Ultimate Exam
A) The highest level of the WBS. B) A control account that aggregates multiple activities. C) The lowest level of the WBS where work is performed and measured. D) A budget reserve for unforeseen work. Answer: C Explanation: Work Packages are the smallest units of the WBS that can be scheduled, budgeted, and tracked. Question 21. A Control Account (CA) is best described as: A) The total project budget including management reserve. B) A management point where scope, schedule, and cost are integrated and performance is measured. C) A collection of unrelated work packages. D) The final deliverable of the project. Answer: B Explanation: A Control Account is a planning and control point that integrates scope, schedule, and cost. Question 22. Which of the following is NOT a direct input to the calculation of Earned Value (EV)? A) Planned Value (PV) B) Actual Cost (AC) C) Percent complete of the work package D) Budget at Completion (BAC) Answer: A Explanation: EV is derived from the percent complete multiplied by the budgeted cost of that work; PV is a separate baseline metric.
Ultimate Exam
Explanation: CV = EV – AC = $75,000 – $70,000 = $5,000 (positive, under budget). SV = EV – PV = $75,000 – $80,000 = –$5,000 (behind schedule). CPI = EV/AC = 75,000/70,000 = 1.07 (>1). SPI = EV/PV = 75,000/80,000 = 0.94 (<1). Question 26. Which of the following statements about the “Estimate to Complete” (ETC) is correct? A) ETC = BAC – EV B) ETC = AC + CV C) ETC is the forecasted cost required to finish the remaining work. D) ETC includes the Management Reserve. Answer: C Explanation: ETC predicts the cost needed to complete the outstanding scope; it does not automatically include reserves. Question 27. When should a project manager consider revising the Performance Measurement Baseline (PMB)? A) Whenever a task is delayed by one day. B) Only after an authorized change request is approved. C) When the CPI falls below 0.9. D) When the project team requests more resources. Answer: B Explanation: The PMB can be formally changed only through an approved change request to maintain baseline integrity. Question 28. Which of the following is a limitation of traditional cost tracking that EVM overcomes? A) It provides a detailed schedule. B) It shows the amount of money spent without indicating work performed.
Ultimate Exam
C) It integrates scope, schedule, and cost automatically. D) It requires a WBS. Answer: B Explanation: Traditional cost tracking tells only how much money has been spent, not how much work has been accomplished; EVM adds the earned-value dimension. Question 29. The “Earned Schedule” (ES) method is primarily used to: A) Forecast cost overruns. B) Convert schedule performance into time units. C) Adjust the BAC for inflation. D) Calculate management reserve usage. Answer: B Explanation: Earned Schedule translates SPI into schedule variance expressed in days, offering a time-based schedule metric. Question 30. Which EVM metric would you examine first to determine if a project is financially healthy? A) VAC B) CPI C) SPI D) ETC Answer: B Explanation: CPI directly reflects cost efficiency; a value below 1 signals cost issues. Question 31. In a project where the BAC is $500,000 and the current EAC is $550,000, what is the projected variance at completion (VAC)?
Ultimate Exam
Question 34. Which of the following is NOT a typical source of data for calculating Earned Value? A) Time-phased budgets from the WBS. B) Actual cost invoices. C. Physical measurements of work completed. D) Stakeholder satisfaction surveys. Answer: D Explanation: Stakeholder satisfaction is a qualitative metric and not used directly in EV calculations. Question 35. The primary purpose of the Earned Value Management summary report is to: A) Document lessons learned after project closure. B) Communicate integrated cost-schedule performance to stakeholders. C) List all change requests pending approval. D) Provide a detailed resource allocation matrix. Answer: B Explanation: The EVM summary report consolidates PV, EV, AC, CPI, SPI, and forecasts, giving stakeholders a clear view of project health. Question 36. Which rule would you apply to a 2-day software coding task where progress cannot be measured until the code is compiled and tested? A) 0/100 rule B) 50/50 rule C) Physical measurement rule D) Weighted milestone rule Answer: A
Ultimate Exam
Explanation: When no partial credit is appropriate, the 0/100 rule assigns value only upon full completion. Question 37. A project’s BAC is $1,000,000, and the Management Reserve is $100,000. What is the total budget (including MR)? A) $900, B) $1,000, C) $1,100, D) $1,200, Answer: C Explanation: Total budget = BAC + MR = $1,000,000 + $100,000 = $1,100,000. Question 38. Which of the following statements about the “Physical Measurement” technique is true? A) It assigns a fixed percentage regardless of actual output. B) It is based on quantifiable units of work (e.g., cubic meters dug). C) It is only used for software development projects. D) It does not require a WBS. Answer: B Explanation: Physical measurement ties earned value to tangible units of work completed. Question 39. When calculating CPI, which of the following values should be used for EV? A) The cumulative PV up to the reporting date. B) The budgeted cost of work actually performed to date. C) The total BAC.
Ultimate Exam
B) Budgeted Cost of Work Scheduled C) Baseline Cost of Work Scheduled D) Baseline Cost of Work Performed Answer: B Explanation: BCWS = Planned Value (PV), the budgeted cost for work scheduled to be done. Question 43. Which of the following is a direct consequence of a CPI less than 1 combined with a positive VAC? A) The project will finish under budget despite current cost inefficiency. B) The project will finish over budget regardless of current performance. C) The project’s schedule will always be ahead. D) The project’s management reserve will be exhausted. Answer: A Explanation: A positive VAC indicates that, based on current forecasts, the total cost is still expected to be below BAC, even though CPI < 1 reflects current cost inefficiency. Question 44. The “Earned Schedule” (ES) value is expressed in: A) Dollars B) Percentage of work completed C) Calendar time (e.g., days) D) Number of change requests Answer: C Explanation: ES translates schedule performance into time units, allowing schedule variance to be measured in days.
Ultimate Exam
Question 45. Which EVM metric would you examine to evaluate whether the remaining work is likely to be completed within the original budget, assuming current cost performance continues? A) SPI B) VAC C) CPI D) ETC Answer: C Explanation: CPI indicates current cost efficiency; if CPI is expected to continue, it directly influences the forecasted total cost. Question 46. In a project with a BAC of $400,000, EV of $250,000, and AC of $300,000, what is the Cost Performance Index? A) 0. B) 1. C) 0. D) 1. Answer: A Explanation: CPI = EV / AC = $250,000 / $300,000 = 0.833, indicating cost overrun. Question 47. Which of the following EVM concepts is directly linked to the “Scope” dimension of the triple-constraint? A) Planned Value (PV) B) Earned Value (EV) C) Actual Cost (AC) D) Management Reserve (MR) Answer: B
Ultimate Exam
D. Both cost and schedule are behind. Answer: A Explanation: CPI > 1 indicates cost efficiency (under budget); SPI < 1 indicates the schedule is lagging. Question 51. The “0/100” rule is most appropriate for which type of work package? A) Activities with measurable physical units. B. Milestones that have no partial deliverables. C. Long-duration tasks with many interim reviews. D. Software development tasks with incremental builds. Answer: B Explanation: When a work package cannot be partially credited, the 0/ rule assigns value only upon full completion. Question 52. Which of the following is the correct relationship among BAC, PMB, and MR? A) PMB = BAC + MR B) BAC = PMB + MR C) PMB = BAC (MR is excluded) D) MR is part of the PMB. Answer: C Explanation: The Performance Measurement Baseline equals the BAC; the Management Reserve is separate and not part of the PMB. Question 53. When calculating the “Estimate to Complete” (ETC) using the “cumulative CPI” method, which formula is applied? A) ETC = (BAC – EV) / CPI
Ultimate Exam
B) ETC = BAC – AC
C) ETC = AC × CPI
D) ETC = (BAC – EV) × CPI
Answer: A Explanation: The cumulative CPI method forecasts remaining cost by dividing the remaining budget by the current CPI. Question 54. A project has a PV of $200,000, EV of $180,000, and AC of $190,000. Which statement is true? A) The project is under budget and ahead of schedule. B) The project is over budget but ahead of schedule. C) The project is under budget but behind schedule. D) The project is over budget and behind schedule. Answer: C Explanation: CV = EV – AC = –$10,000 (over budget). SV = EV – PV = – $20,000 (behind schedule). Actually CV is negative meaning over budget, so answer should be D. Corrected Answer: D – The project is over budget and behind schedule. Question 55. Which EVM metric would you use to determine how much of the planned budget remains to be earned? A) VAC B) ETC C) Remaining Budget = BAC – EV D) CPI Answer: C Explanation: BAC – EV gives the budgeted amount of work still to be earned.
