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WorksheetsEarn Value Management Quiz
Total questions: 21
Worksheet time: 11mins
What is Earned Value (EV)?
Actual cost of work performed
Budgeted cost of work scheduled
Budgeted cost of work performed
Explain the formula for Earned Value (EV).
EV = % complete - BAC
EV = % complete + BAC
EV = % complete / BAC
EV = % complete * BAC
What is Planned Value (PV) in Earned Value Analysis?
Actual cost of work performed
Authorized budget assigned to the work scheduled to be accomplished
Budget at Completion (BAC)
Planned cost of work performed
Define Actual Cost (AC) in the context of Earned Value Management.
Planned cost for the work completed
Cost budgeted for the work completed
Total cost actually incurred for the work completed
Estimated cost for the work completed
What is the significance of Cost Performance Index (CPI) in Earned Value Analysis?
It measures the scope of the project by comparing the actual work completed to the planned work
It measures the cost efficiency of the project by comparing the actual cost of work performed to the budgeted cost of work performed.
It measures the time efficiency of the project by comparing the actual time taken to complete the work to the estimated time
It measures the quality of the project by comparing the actual quality of work performed to the expected quality
Explain the concept of Schedule Performance Index (SPI) in Earned Value Management.
The Schedule Performance Index (SPI) measures the quality of work in Earned Value Management.
The Schedule Performance Index (SPI) measures the cost efficiency in Earned Value Management.
The Schedule Performance Index (SPI) measures the risk management in Earned Value Management.
The Schedule Performance Index (SPI) measures the efficiency of schedule performance in Earned Value Management.
How is Earned Value Analysis used to forecast project outcomes?
By guessing the project outcomes
By comparing planned value, earned value, and actual cost of the project
By using only the planned value
By ignoring the project data
Explain the concept of Variance Analysis in Earned Value Management.
Analyzing the color variance in the project
Comparing planned budget and schedule with actual budget and schedule
Comparing actual budget with forecasted budget
Measuring the temperature variance in the project
Budgeted cost of work scheduled (BCWS)=Planned Value (PV)
True
False
Budgeted cost of work performed (BCWP)= Actual Cost (AC)
False
True
Actual cost of work performed (ACWP)=Actual Cost (AC)
False
True
Schedule Variance, SV = EV – PV (Earned Value – Planned Value)
True
False
Cost Variance, CV = EV –PV (Earned Value – Planned Value)
False
True
Earned value asks and answers more important questions which are
How much of the budget “should have been” spent at this point in the project?
How much of the budget “have been” spent at this point in the project?
•How much of the budget “must be” spent at this point in the project?
The CPI is used to predict the magnitude of a possible time overrun or behind schedule. It adjusts the budget based on past performance
False
True
The SPI is used to predict the magnitude of a possible time advance or delay. It adjusts the schedule based on past performance
False
True
BAC= Budget at completion
Actual Cost at Completion
Original project estimate
ETC = Estimate to Complete refers to: work that has not been performed and is therefore
an estimate cost.
work that has been performed and is therefore
an actual cost.
work that has not been performed and is therefore
an estimate cost.
If Schedule Variance (SV) = 0
the project is progressing as planned
The project is behind schedule
If Cost Performance Index (CPI) is less than 1.0,
the earned value is more than the actual costs.
indicates an over budget cost performance.
If the Schedule Performance Index = 1.0,
the schedule performance is behind time
the schedule performance is progressing precisely as planned.
