Chapter 5

What is the schedule variance for the project described?

What do a CPI value of 1.25 and an SPI value of 1.33 for a project indicate?

Which aspects of a project may be influenced by a budget cut due to economic downturn?

If an influential stakeholder requests to complete the project earlier than planned, which two parameters are most likely to be affected by this change?

Assume that a project manager wants to compress the schedule. Which technique could they utilize to achieve this goal effectively?

What does a negative schedule variance (SV) indicate?

How is the Schedule Performance Index (SPI) calculated?

What does a Schedule Performance Index (SPI) of 0.75 imply?

Why is the Schedule Performance Index (SPI) important in project management?

How can a project manager use the graphical representation of performance variables over time?

Which of the following is true about the Triple Constraint in project management?

What does the term 'schedule' refer to in project management?

In a situation where a project is behind schedule with no extra resources available, what must change according to the Triple Constraint?

Which of the following parameters are fundamental in Earned Value Management (EVM)?

What approach can a project manager take to meet a deadline approaching within a week when the project is behind schedule?

How does the 'time is money' principle relate to the relationship between cost and schedule?

Which parameter might need to change if a project manager wants to meet a deadline but does not have extra resources available?

What does the Triple Constraint indicate about making changes in project management?

In the context of a project, what does the term 'triple constraint' refer to?

Which project management objective does the Earned Value Technique (EVT) help in monitoring?

In project management, contingency reserves are primarily used for what purpose?

Which type of estimation is less time-consuming but also less accurate than parametric and bottom-up estimation?

What formula is used for Cost Performance Analysis in project management?

What formula is used for Schedule Performance Analysis in project management?

When putting contingency reserves into project plans, which of the following statements about contingency reserves is NOT true?

What is the purpose of controlling costs in project management?

Which document describes how the cost will be monitored and controlled in a project?

What is the purpose of the cost performance baseline in project management?

Why must any change to the budget be approved before implementation?

What are the input items to the Control Cost process in project management?

What is planned value (PV) in project management?

How is planned value (PV) calculated in project management?

What does PV represent in project management?

Which formula is used to calculate the planned value for a project?

What does schedule variance (SV) measure in project management?

Why is it important to calculate planned value (PV) in project management?

How does planned value relate to budget at completion (BAC) in project management?

What is the main purpose of calculating schedule variance (SV) in project management?

From the provided text, what does Planned Value represent in terms of cost?

Variance analysis is not a technique used to assess the magnitude of variation in the value of a variable from the baseline.

The earned value technique (EVT) is commonly used to measure only the scope and schedule performance of a project.

In earned value management (EVM), the budgeted cost of work scheduled is compared with the actual cost of work performed.

The project cost and project schedule are unrelated to each other according to earned value management principles.

Variance analysis is primarily focused on assessing deviations in project parameters such as quality and risk.

Schedule Variance (SV) is calculated as EV minus PV in Earned Value Management.

A negative Schedule Variance (SV) indicates that the project is ahead of schedule.

Schedule Performance Index (SPI) is calculated by dividing EV by PV in Earned Value Management.

An SPI value of 0.75 indicates that the project is progressing faster than planned.

All performance variables in Earned Value Management, except BAC, are calculated at different points in time as the project progresses.

Cost variance (CV) is calculated by subtracting the actual cost (AC) from the planned value (PV).

The total planned value (PV) of a project is equal to the budget at completion (BAC).

The reserves are included in the cost baseline for projects.

Schedule variance (SV) and the schedule performance index (SPI) are calculated in terms of cost using actual cost (AC).

Earned value analysis is primarily based on planned value (PV), earned value (EV), and actual cost (AC).

The cost baseline is developed during the process of determining the budget for a project.

In earned value management, the earned value of a project at a certain point indicates the budgeted cost of work performed.

If the planned value of a project is higher than the earned value, it indicates a favorable cost variance.

Cost variance is calculated by subtracting the earned value from the actual cost of work performed.

In variance analysis, any deviation in project parameters from the baseline is considered irrelevant to project performance.

The earned value is calculated using the formula EV = BAC × (work completed/total work required)

Actual cost (AC) is the total cost actually incurred until a specific point on the timescale in performing the work for a project.

Cost variance (CV) is calculated by subtracting the actual cost (AC) from the earned value (EV).

The expected value of CV is always negative because we expect the earned value to be less than the actual cost.

A positive cost variance indicates better cost performance than expected, while a negative cost variance indicates worse cost performance than expected.

The Estimate to Complete (ETC) is calculated as the Budget at Completion (BAC) minus Earned Value (EV).

Cost Performance Index (CPI) is calculated by dividing Earned Value (EV) by Actual Cost (AC).

Schedule Variance (SV) is calculated as the difference between Earned Value (EV) and Planned Value (PV).

Planned Value (PV) is calculated as Budget at Completion (BAC) times Time Passed divided by Total Schedule Time.

The Cost Variance (CV) is calculated as the Actual Cost (AC) minus Earned Value (EV).

The Budget at Completion (BAC) represents the total budget authorized for performing the project work.

Earned Value (EV) indicates the value of the actually performed work in terms of the approved budget for a project or project activity.

The Budget at Completion (BAC) is also known as the Actual Cost (AC).

Variance analysis primarily focuses on assessing deviations in project parameters such as quality and risk.

The Performance Measurement Baseline (PMB) includes variables such as BAC, EV, and AC.

Planned Value (PV) represents the total cost of the project work originally estimated in the project management plan.

Budget at Completion (BAC) is calculated differently depending on whether it is for the whole project or just a part of it.

Earned Value (EV) is equivalent to the Budgeted Cost for Work Scheduled (BCWS).

Cost Performance Analysis focuses on how effectively money is being spent on the project work compared to set expectations.

The Schedule Performance Index (SPI) is calculated by dividing Earned Value (EV) by Actual Cost (AC).