Project Cost Management Quiz

18 Questions

What does EV stand for in the context of project management?

Earned Value

Which formula best represents Estimate At Completion (EAC) in project management?

(BAC / CPI) * AC

What does PV represent in project management terms?

Planned Value

In project management, what does BAC stand for?

Budget At Completion

What is the purpose of Actual Cost (AC) in project management?

To calculate final project cost

How is Earned Value calculated in project management?

(PV * % Complete)

In Earned Value Management (EVM), what does AC represent?

Actual Cost

What does CPI (Cost Performance Index) indicate in Earned Value Management (EVM)?

The project is under budget

If a project's EAC (Estimate At Completion) is higher than the BAC (Budget At Completion), what does this imply?

The project is over budget

What is the relationship between VAC (Variance At Completion) and EAC in Earned Value Management (EVM)?

VAC = BAC - EAC

How is Planned Value (PV) calculated in Earned Value Management (EVM)?

$100 x Number of birdhouses planned to build

If a project has a CPI of 0.909, what can be inferred about its performance?

Over budget and behind schedule

What does Planned Value (PV) represent in Earned Value Management methodology?

The budgeted cost of the work scheduled to be done

In Earned Value Management, what does a Planned Value (PV) of $950.00 as of day 3 indicate?

The project is ahead of schedule

How is Planned Value (PV) calculated in Earned Value Management?

PV = BAC * % Complete

Which formula correctly represents the relationship between Planned Value (PV), Earned Value (EV), and Actual Cost (AC) in Earned Value Management?

EV = PV + AC

If a project has a Planned Value (PV) of $1000 and Actual Cost (AC) of $1200, what does this suggest about the project performance?

The project is over budget

Which term in Earned Value Management signifies the total budget allocated for the project?

Budget at Completion (BAC)

Study Notes

Earned Value Management (EVM)

EVM is a method to measure project performance by comparing the value of work accomplished to the actual cost incurred.

Budgeted Cost of Work Scheduled (BCWS)

BCWS is the budgeted cost for the work planned to be completed by a specific point in time.

Earned Value (EV)

EV is the estimated value of the work accomplished as of today.

Actual Cost (AC)

AC is the actual cost incurred for the work accomplished as of today.

Estimate at Completion (EAC)

EAC is the anticipated total cost of the project at completion.
EAC is how much you expect the project to cost when it is complete.

Estimate to Complete (ETC)

ETC is the outstanding amount of money needed to complete the remaining work on the project.
ETC is how much more money you expect to spend to complete the project.

Cost Variance (CV)

CV is the difference between what you have planned to spend on the project and what you've actually spent so far.
CV = EV – AC
Negative CV indicates over budget, while positive CV indicates under budget.

Schedule Variance (SV)

SV is the difference between the planned schedule and the actual schedule.
SV = EV – PV
Negative SV indicates behind schedule, while positive SV indicates ahead of schedule.

Variance at Completion (VAC)

VAC is how much over or under budget the project will be at the end of the project.
VAC = BAC – EAC

Test your knowledge on project cost management concepts such as budgeted cost, actual cost, and estimated cost at completion. Practice questions related to EAC calculations and budgeted cost of work scheduled.

Make Your Own Quizzes and Flashcards

Convert your notes into interactive study material.