Podcast
Questions and Answers
What does EV stand for in the context of project management?
What does EV stand for in the context of project management?
- Earned Value (correct)
- Estimated Value
- Estimated Cost
- Estimated Completion
Which formula best represents Estimate At Completion (EAC) in project management?
Which formula best represents Estimate At Completion (EAC) in project management?
- (PV + AC) / 2
- (BAC / CV) * AC
- (BAC / CPI) * AC (correct)
- (BAC - AC) + EV
What does PV represent in project management terms?
What does PV represent in project management terms?
- Planned Value (correct)
- Progressive Value
- Project Variance
- Performance Value
In project management, what does BAC stand for?
In project management, what does BAC stand for?
What is the purpose of Actual Cost (AC) in project management?
What is the purpose of Actual Cost (AC) in project management?
How is Earned Value calculated in project management?
How is Earned Value calculated in project management?
In Earned Value Management (EVM), what does AC represent?
In Earned Value Management (EVM), what does AC represent?
What does CPI (Cost Performance Index) indicate in Earned Value Management (EVM)?
What does CPI (Cost Performance Index) indicate in Earned Value Management (EVM)?
If a project's EAC (Estimate At Completion) is higher than the BAC (Budget At Completion), what does this imply?
If a project's EAC (Estimate At Completion) is higher than the BAC (Budget At Completion), what does this imply?
What is the relationship between VAC (Variance At Completion) and EAC in Earned Value Management (EVM)?
What is the relationship between VAC (Variance At Completion) and EAC in Earned Value Management (EVM)?
How is Planned Value (PV) calculated in Earned Value Management (EVM)?
How is Planned Value (PV) calculated in Earned Value Management (EVM)?
If a project has a CPI of 0.909, what can be inferred about its performance?
If a project has a CPI of 0.909, what can be inferred about its performance?
What does Planned Value (PV) represent in Earned Value Management methodology?
What does Planned Value (PV) represent in Earned Value Management methodology?
In Earned Value Management, what does a Planned Value (PV) of $950.00 as of day 3 indicate?
In Earned Value Management, what does a Planned Value (PV) of $950.00 as of day 3 indicate?
How is Planned Value (PV) calculated in Earned Value Management?
How is Planned Value (PV) calculated in Earned Value Management?
Which formula correctly represents the relationship between Planned Value (PV), Earned Value (EV), and Actual Cost (AC) in Earned Value Management?
Which formula correctly represents the relationship between Planned Value (PV), Earned Value (EV), and Actual Cost (AC) in Earned Value Management?
If a project has a Planned Value (PV) of $1000 and Actual Cost (AC) of $1200, what does this suggest about the project performance?
If a project has a Planned Value (PV) of $1000 and Actual Cost (AC) of $1200, what does this suggest about the project performance?
Which term in Earned Value Management signifies the total budget allocated for the project?
Which term in Earned Value Management signifies the total budget allocated for the project?
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
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Description
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.
