Question 1

Which of the following methods of variance analysis is the best indicator of how far off the budget a project will be at completion?

Accepted Answer

Variance at Completion (VAC) is the best indicator of how far off the budget a project will be at completion. It is calculated as the difference between the Budget at Completion (BAC) and the Estimate at Completion (EAC), providing a clear measure of the expected budget variance at the end of the project.

Question 2

The cost variance for a project is calculated by

Accepted Answer

Cost Variance (CV) is calculated as Earned Value (EV) minus Actual Cost (AC), which is represented by the formula CV = EV - AC. This measures the cost efficiency and financial performance of a project by comparing what has been earned to what has been spent.

Question 3

A project manager receives the following information on his project: PV = 4,500, AC =4,000, EV = 5,000. How well is the project doing in terms of budget?

Accepted Answer

The project is 1,000 under budget, which is determined by calculating the Cost Variance (CV) = EV - AC = 5,000 - 4,000 = 1,000. This positive variance indicates the project is under budget.

Question 4

The chief financial officer receives the following information on a project: PV = 10,000, EV = 12,000, AC = 8,000, BAC = 20,000, EAC = 13,333. How is the project doing in terms of schedule?

Accepted Answer

The project is ahead of schedule because the Earned Value (EV) of $12,000 is greater than the Planned Value (PV) of $10,000, indicating that more work has been completed than was originally planned for this point in time.

Question 5

A program financial accountant learns that a project is currently earning $1.15 for each dollar actually spent. The accountant is able to determine this by looking at the

Accepted Answer

The Cost Performance Index (CPI) is used to calculate the financial efficiency of a project, specifically how much earning or value is obtained for each dollar spent. A CPI of $1.15 indicates that for every dollar spent, $1.15 is earned, directly relating to the scenario described.

Question 6

Which performance index is the most potentially misleading?

Accepted Answer

The answer of Which performance index is the most potentially...

Question 7

When someone familiar with each task estimates what percent of the task has been completed or how much of the task remains, they are creating a method for assigning costs to the baseline called the

Accepted Answer

The "percent complete rule" is a method where someone familiar with each task estimates what percent of the task has been completed or how much of the task remains, to assign costs to the project baseline.

Question 8

Of the following costs, which are NOT included in baseline?

Accepted Answer

Budget reserves are not included in the baseline as they are typically set aside for unforeseen work and are not part of the original project cost estimate.

Question 9

Which of the following methods will measure the scheduling efficiency of the work accomplished to date?

Accepted Answer

EV / PV (Earned Value / Planned Value) measures the scheduling efficiency by comparing the amount of work actually completed to the amount of work planned to be completed by a certain date.

Question 10

The value that tells you the planned value of work that has actually been completed is the

Accepted Answer

The value that tells you the planned value of work that has actually been completed is the Earned Value (EV). It measures the work performed expressed in terms of the budget authorized for that work.

Question 11

Baseline project budgets are derived from

Accepted Answer

Baseline project budgets are derived from time-phasing the work packages, which involves distributing the budget over the project's timeline based on when work is planned to be performed.

Question 12

Which of the following methods will measure the cost efficiency of the work accomplished to date?

Accepted Answer

The Cost Performance Index (CPI) is calculated as Earned Value (EV) divided by Actual Cost (AC), which measures cost efficiency.

Question 13

The earned value of a project is the

Accepted Answer

The earned value of a project represents the value of the work actually completed to date, compared to the original budget, hence it is the percent of the original budget that has been earned by work that is completed.

Question 14

The indicator that tells you the amount each remaining dollar must earn for the project to stay within budget is the

Accepted Answer

The TCPI, or To-Complete Performance Index, is the indicator that tells you the amount each remaining dollar must earn for the project to stay within budget.

Question 15

The schedule variance for a project is calculated by:

Accepted Answer

Schedule variance (SV) is calculated as Earned Value (EV) minus Planned Value (PV), which measures the schedule performance of a project by comparing the work performed against the work planned.

Question 16

A CPI or SPI value less than one indicates that the project is currently

Accepted Answer

A CPI (Cost Performance Index) or SPI (Schedule Performance Index) value less than one indicates that the project is over budget (over cost) or behind schedule, respectively.

Question 17

A project manager notices that $5,560 worth of work that was scheduled to be completed at this time has not been accomplished. She knows this by looking at the

Accepted Answer

The Schedule Variance (SV) indicates the difference between the work planned and the work actually accomplished. If $5,560 worth of work has not been completed, it reflects a negative SV.

Question 18

A reason that the duration on a task may differ from an original duration on a tracking Gantt chart could be

Accepted Answer

The answer of A reason that the duration on a...

Question 19

Which of the following is NOT true regarding scope creep?

Accepted Answer

The answer of Which of the following is NOT true...

Question 20

Which of the following are required to assess the current status of a project using the earned-value cost / schedule system?

Accepted Answer

PV (Planned Value), EV (Earned Value), and AC (Actual Cost) are the fundamental elements required to assess the current status of a project using the earned-value cost/schedule system.

Quiz 13: Progress and Performance Measurement and Evaluation