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Question 1. Which term represents the budgeted cost for work scheduled to be performed by a specific date? A) Earned Value (EV) B) Actual Cost (AC) C) Planned Value (PV) D) Variance at Completion (VAC) Answer: C Explanation: Planned Value (PV), also called Budgeted Cost of Work Scheduled (BCWS), is the authorized budget for work planned to be completed up to a point in time. Question 2. The budgeted cost for work actually performed to date is known as: A) PV B) EV C) AC D) EAC Answer: B Explanation: Earned Value (EV) or Budgeted Cost of Work Performed (BCWP) quantifies the budgeted amount for work that has been completed. Question 3. Which metric indicates the cost variance of a project? A) SV = EV – PV B) CV = EV – AC C) CPI = EV / AC D) SPI = EV / PV Answer: B
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Explanation: Cost Variance (CV) is calculated as EV minus AC; a positive CV indicates under-run, negative indicates over-run. Question 4. The formula for Schedule Performance Index (SPI) is: A) EV / AC B) EV / PV C) PV / EV D) AC / EV Answer: B Explanation: SPI = EV ÷ PV; it measures schedule efficiency. An SPI > 1 means ahead of schedule. Question 5. Which of the following best defines Budget at Completion (BAC)? A) Forecasted total cost at project end B) Total authorized budget for the entire project C) Cost of work remaining D) Reserve for unexpected events Answer: B Explanation: BAC is the total planned budget for the project or a specific control account. Question 6. In Earned Value Management, the Management Reserve (MR) is: A) Funds allocated for known risks B) Budget for scope changes approved by the sponsor C) Funds set aside for unforeseeable work, not part of the baseline D) The same as Contingency Reserve
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C) A risk register entry D) A document that records only schedule data Answer: B Explanation: A CA is a management control point where all three dimensions are combined for performance measurement. Question 10. The Responsibility Assignment Matrix (RAM) is used to: A) Allocate contingency reserves B) Define the logical network of activities C) Show responsibility of organizational units for WBS elements D) Record actual costs only Answer: C Explanation: RAM (often a RACI chart) links responsibilities to WBS elements. Question 11. Which component is NOT part of the Performance Measurement Baseline (PMB)? A) Scope baseline B) Schedule baseline C) Cost baseline D) Risk mitigation plan Answer: D Explanation: PMB consists of scope, schedule, and cost baselines; risk mitigation is separate. Question 12. When a change is authorized, what must be updated in the EVMS? A) Only the AC values B) Only the PV values
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C) The PMB to reflect new scope, schedule, or budget D) The RAM only Answer: C Explanation: Authorized changes require updating the Performance Measurement Baseline. Question 13. A Schedule Variance (SV) of –$20,000 indicates: A) The project is ahead of schedule by $20,000 worth of work B) The project is behind schedule by $20,000 worth of work C) The project is under budget D) No schedule impact, only cost impact Answer: B Explanation: Negative SV means less work has been performed than planned. Question 14. If CPI = 0.85, what does this indicate about cost performance? A) Cost efficiency is 85% of the budgeted amount B) The project is under budget by 15% C) The project is over budget by 15% D) Schedule performance is 85% efficient Answer: C Explanation: CPI < 1 means actual costs exceed earned value; the project is over budget. Question 15. Which variance threshold would most likely trigger a corrective action review? A) CV = +2%
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A) EAC – AC
B) BAC – EAC
C) EV – AC
D) PV – EV
Answer: B Explanation: VAC = BAC – EAC; a positive VAC indicates projected underrun. Question 19. To meet the original budget (BAC) given current performance, the To-Complete Performance Index (TCPI) is: A) (BAC – EV) / (BAC – AC) B) (BAC – EV) / (EAC – AC) C) (EAC – AC) / (BAC – EV) D) (BAC – AC) / (BAC – EV) Answer: A Explanation: TCPI_BAC uses remaining budget (BAC – EV) divided by remaining funds (BAC – AC). Question 20. If TCPI_BAC = 1.30 and current CPI = 0.90, what does this suggest? A) The remaining work must be performed more efficiently than historically achieved; target may be unrealistic. B) The project is on track to meet BAC. C) No action required because TCPI < CPI. D) The schedule is the only concern. Answer: A Explanation: TCPI > 1 indicates required efficiency above 100%; when CPI is lower, achieving the target is unlikely without changes.
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Question 21. 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 assigns no earned value until the activity is fully finished. Question 22. Under the 50/50 rule, how is earned value recognized? A) 0 % at start, 100 % at finish B) 50 % at start, 50 % at finish C) 100 % at start, 0 % at finish D) Linear accrual based on duration Answer: B Explanation: The 50/50 rule splits earned value equally between start and finish. Question 23. Which measurement technique is appropriate for support-type activities like project management? A) 0/100 rule B) Level of Effort (LOE) C) 50/50 rule D) Milestone weighting Answer: B Explanation: LOE tasks are measured on a time-based basis; PV, EV, and AC are typically equal.
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Explanation: Baseline changes are formal and must be approved, updating all three baselines. Question 27. Which of the following actions is NOT a typical corrective action for a cost overrun? A) Reassigning resources to improve productivity B) Adding more contingency reserve to the budget C) Reducing scope or deferring work D) Negotiating better contract rates Answer: B Explanation: Adding contingency does not correct the overrun; it merely masks it. Corrective actions address the root cause. Question 28. When integrating Earned Value data with a Critical Path Method (CPM) schedule, which metric is most directly affected? A) BAC B) PV C) Critical path float D) Management Reserve Answer: C Explanation: EV data can be used to update activity durations, influencing float on the critical path. Question 29. Which of the following statements about the Earned Value Technique (EVT) is true? A) EVT replaces CPM entirely. B) EVT incorporates schedule risk into cost forecasts. C) EVT only applies to cost, not schedule.
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D) EVT eliminates the need for a PMB. Answer: B Explanation: EVT integrates schedule risk analysis with Earned Value to improve forecast accuracy. Question 30. The purpose of an EVMS validation review is to: A) Approve the project charter B) Verify that the EVMS conforms to required standards and is operating correctly C) Allocate contingency reserves D) Update the RAM Answer: B Explanation: Validation reviews ensure the EVMS meets policy and is correctly implemented. Question 31. Which of the following is a characteristic of a “level of effort” (LOE) activity? A) Earned value is earned only at 100 % completion. B) PV, EV, and AC are expected to be equal each reporting period. C) It is measured using the 50/50 rule. D) It is always excluded from the baseline. Answer: B Explanation: LOE tasks are time-based; budgeted cost, earned value, and actual cost are usually the same. Question 32. A project has PV = $150,000, EV = $120,000, and AC = $130,000. What is the Schedule Variance (SV)? A) –$30,
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B) EAC = BAC / CPI
C) EAC = AC + New Management ETC D) EAC = (BAC – EV) / (CPI × SPI) Answer: B Explanation: Using cumulative CPI assumes future work will continue at the same cost efficiency. Question 36. An EAC of $210,000 compared with a BAC of $200, yields a VAC of: A) –$10, B) $10, C) –$210, D) $200, Answer: A Explanation: VAC = BAC – EAC = $200,000 – $210,000 = –$10,000 (projected overrun). Question 37. Which of the following is NOT a typical component of a Control Account? A) Scope description B) Budget allocation C) Detailed activity list (below work-package level) D) Performance measurement data Answer: C Explanation: Detailed activities belong to work packages; control accounts aggregate them.
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Question 38. When applying the 0/100 rule to a milestone, when is earned value recognized? A) At the start of the milestone B) At 50 % completion C) Only when the milestone is fully achieved D) Continuously throughout the milestone duration Answer: C Explanation: The 0/100 rule awards EV only after the milestone is completely finished. Question 39. Which of the following best describes “baseline variance” in EVMS? A) Difference between AC and EV B) Difference between PV and EV C) Difference between the current performance data and the approved baseline D) Difference between BAC and EAC Answer: C Explanation: Baseline variance compares actual performance against the approved performance measurement baseline. Question 40. In a project where the Management Reserve is $25,000 and the Contingency Reserve is $15,000, which statement is correct? A) Both reserves are part of the PMB. B) Only the Contingency Reserve is included in the PMB. C) Neither reserve can be used without sponsor approval. D) Management Reserve is used for known risks, Contingency for unknown risks. Answer: B
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Explanation: This formula uses both CPI and SPI to adjust the forecast. Question 44. If a project’s current CPI = 0.75 and the remaining work is expected to be performed at the budgeted rate, which ETC formula should you use? A) ETC = (BAC – EV) / CPI B) ETC = BAC – EV C) ETC = (BAC – EV) / (CPI × SPI) D) ETC = AC + (BAC – EV) Answer: B Explanation: Assuming future work at budgeted rate ignores CPI; ETC = BAC
- EV. Question 45. Which of the following is a valid reason to perform a baseline change? A) Minor schedule shift of 1 % that does not affect cost B) Adding a new scope element that increases BAC C) Updating the RAM after a staff reorganization D) Adjusting the EV calculation method from 0/100 to 50/ Answer: B Explanation: Adding scope changes the baseline and thus requires a formal baseline change. Question 46. In EVMS, a “milestone weighting” technique is used to: A) Allocate cost to activities based on duration B) Assign a proportion of total budget to specific intermediate milestones C) Determine the CPI for each work package D) Set the Management Reserve amount
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Answer: B Explanation: Milestone weighting distributes budget across key project events. Question 47. Which statement about the 50/50 rule is true? A) It is appropriate for short-duration tasks where progress cannot be measured. B) It can cause double-counting if not applied carefully. C) It awards 50 % of the budget at start and the remaining 50 % at completion. D) It is the default rule for all LOE activities. Answer: C Explanation: The 50/50 rule splits earned value equally between start and finish. Question 48. If a control account has a BAC of $80,000, EV of $40,000, and AC of $45,000, what is the current TCPI to meet BAC? A) 0. B) 1. C) 1. D) 0. Answer: B Explanation: TCPI_BAC = (BAC – EV) / (BAC – AC) = ($80k-$40k) / ($80k-$45k) = $40k / $35k = 1.14 (rounded to 1.11 for answer choice). Question 49. Which of the following best describes a “formal change control process” in EVMS? A) Updating the schedule without documentation
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Question 52. In EVMS, the term “earned schedule” (ES) is used to: A) Convert earned value into time units for schedule analysis B) Replace the schedule baseline entirely C) Measure only cost performance D) Determine the Management Reserve amount Answer: A Explanation: Earned Schedule translates EV into schedule time, providing a time-based schedule performance metric. Question 53. Which of the following would most likely increase the CPI of a project? A) Adding more work without additional cost B) Reducing AC through improved productivity while maintaining EV C) Increasing PV without changing AC or EV D) Delaying project start date Answer: B Explanation: CPI = EV / AC; lowering AC while EV stays constant raises CPI. Question 54. When performing a variance analysis, the root cause of a negative CV is most often: A) Over-allocation of resources B) Under-allocation of resources C) Scope creep not reflected in budget D) Schedule variance only Answer: C Explanation: Cost overruns frequently stem from work performed beyond the budgeted scope.
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Question 55. Which of the following best defines “forecast accuracy” in the context of EAC? A) The difference between AC and EV at a single point in time B) The closeness of the EAC to the final actual cost at project completion C) The magnitude of the Management Reserve D) The number of change requests approved Answer: B Explanation: Forecast accuracy measures how well the EAC predicts the final actual cost. Question 56. A project manager wants to improve schedule performance. Which of the following actions directly influences SPI? A) Reducing AC through cost cuts B) Accelerating work to increase EV relative to PV C) Adding contingency reserves D) Updating the RAM Answer: B Explanation: SPI = EV / PV; increasing EV (or decreasing PV) improves SPI. Question 57. Which type of reserve is typically included in the performance measurement baseline? A) Management Reserve B) Contingency Reserve C) Both Management and Contingency Reserve D) Neither reserve is in the baseline Answer: B
