Question 1

Define the terms budgeted cost of work performed BCWP), earned value EV), and actual cost AC).

Accepted Answer

The answer of Define the terms budgeted cost of work...

Question 2

At the end of three months, the cost factors in A&B's healthcare project are as follows: Earned value = $17,000, Actual cost = $18,200. What is the cost variance CV) and cost performance index CPI) for the project?

Accepted Answer

CV = Earned Value - Actual Cost
CV = $17,000 - $18,200
CV = -$1,200

CPI = Earned Value / Actual Cost
CPI = $17,000 / $18,200
CPI = 0.93

Therefore, the correct answer is B, as it matches both the CV and CPI calculated above.

Question 3

_____ is the difference between the earned value and the planned value.

Accepted Answer

Schedule variance is the correct term for the difference between the earned value and the planned value in project management. It helps in determining whether a project is ahead or behind its planned schedule.

Question 4

_____ is the detailed cost estimates for each activity in the project.

Accepted Answer

Budgeted cost of work scheduled (BCWS), also known as planned value, is the estimated cost for each activity in the project schedule. It helps in tracking the progress of the project and identifying any deviations from the plan. Actual Cost (AC), Actual Cost of Work Performed (ACWP), Earned Value (EV), and Cost Performance Index (CPI) are all related to tracking and measuring the project's cost performance.

Question 5

_____ is the revised project budget based on actual cost to date plus the estimate to complete.

Accepted Answer

The Estimate at Completion (EAC) is the revised project budget based on the actual cost to date plus the estimate to complete.

Question 6

_____ is the sum of the items in the budgeted cost of work scheduled that should have been spent by a particular day.

Accepted Answer

Planned value (PV) is the sum of the budgeted cost of work scheduled (BCWS) for all activities or tasks scheduled to be completed by a certain date. It represents the planned or scheduled cost of the work that should have been completed by a specific point in time, and is also known as the budgeted cost of work scheduled (BCWS). PV provides a benchmark against which actual cost and schedule performance can be measured, and is an important component of earned value management.

Question 7

_____ is the budget for the entire project.

Accepted Answer

Budget at completion is the total planned budget for the entire project.

Question 8

What is a request for proposal RFP)?

Accepted Answer

The answer of What is a request for proposal RFP)?...

Question 9

Which of the following indicates that a project is behind schedule?

Accepted Answer

A SPI value less than one indicates that the project is behind schedule, as this means that the project is not progressing as planned in terms of its schedule. A SPI value of one indicates that the project is on schedule, while a value greater than one means that the project is ahead of schedule. CV, on the other hand, measures the cost performance of the project, so it does not directly reflect whether the project is behind schedule or not.

Question 10

Describe earned value management EVM).

Accepted Answer

The answer of Describe earned value management EVM)....

Question 11

_____ is the sum of money spent so far.

Accepted Answer

Actual cost represents the real amount of money spent on a project/activity so far.

Question 12

_____ is the sum of budgeted expenses up to a particular point in the schedule.

Accepted Answer

The answer of _____ is the sum of budgeted expenses...

Question 13

A positive cost variance CV) indicates that the project is _____.

Accepted Answer

A positive cost variance (CV) means that the actual cost of the project is less than the planned or budgeted cost, which indicates that the project is under budget.

Question 14

Compare and contrast contingency reserves and management reserves.

Accepted Answer

The answer of Compare and contrast contingency reserves and management...

Question 15

Cost variance CV) is _____.

Accepted Answer

Cost variance (CV) is calculated as the earned value (EV) minus the actual cost (AC), which measures the cost performance of a project by indicating how much over or under budget the project is.

Question 16

_____ is the estimate of the amount of money needed to fill the unfinished part of the project.

Accepted Answer

Estimate to complete is the estimate of the amount of money needed to complete the unfinished part of the project. A is the total budgeted cost for the project, C is a measurement of schedule performance, D is a measurement of cost efficiency, and E is the total cost of work completed to date.

Question 17

What are parameters and parametric estimates?

Accepted Answer

The answer of What are parameters and parametric estimates?...

Question 18

_____ is a method of comparing the budgeted and actual costs of a project periodically during the project.

Accepted Answer

Earned value management is a project management technique for measuring project performance and progress by comparing budgeted cost against actual cost periodically during the project. It provides a way to measure if a project is on track, behind schedule, or over budget. Configuration management, risk management, change management, and contract management are all important aspects of project management, but they do not involve specific methods for comparing budgeted and actual costs.

Question 19

Which is the most accurate and time-consuming estimating method? Explain.

Accepted Answer

The answer of Which is the most accurate and time-consuming...

Question 20

Jean is managing a project in his organization. The planned value for this project is $4,500. At the end of eight weeks, he finds that his earned value is $3,500. What is the present schedule variance for the project? What does the variance signify?

Accepted Answer

The schedule variance (SV) is calculated by subtracting the planned value (PV) from the earned value (EV). 
SV = EV - PV 
SV = $3,500 - $4,500 
SV = -$1,000, which means the project is behind schedule. Therefore, the best choice is A: $-1,000; behind schedule.

Quiz 9: Estimating and Managing Costs