Question 1

The cost variance for a project is calculated by
A)EV - AC.
B)AC - SV.
C)PV - EV.
D)CV - EV.
E)EV - PV.

Accepted Answer

The cost variance is the difference between the planned value of work actually done (EV)and the actual cost of work actually done (AC).The cost variance for a project is calculated EV - AC.

Question 2

The schedule variance for a project is calculated by:
A)EV - AC
B)AC - SV
C)PV - EV
D)CV - EV
E)EV - PV

Accepted Answer

The schedule variance is the difference between the planned value of work actually done (EV)and the planned value of work that was planned to be done (PV).The schedule variance for a project is calculated EV - PV.

Question 3

The second step in the project control process for measuring and evaluating project performance is to
A)Review the baseline plan with top management.
B)Analyze inputs to control system.
C)Compare plan against actual.
D)Measure progress and performance.
E)Review spending with team members.

Accepted Answer

The project control steps for measuring and evaluating project performance are first to set a baseline plan, then to measure progress and performance, next to compare plan against actual and finally to take action.

Question 4

The final step in the project control process for measuring and evaluating project performance is to
A)Take appropriate action.
B)Prepare a report to top management.
C)Follow up on corrective action.
D)Measure progress and performance.
E)Review spending with team members.

Accepted Answer

The project control steps for measuring and evaluating project performance are first to set a baseline plan, then to measure progress and performance, next to compare plan against actual and finally to take action.

Question 5

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
A)0/100 percent rule.
B)Task complete rule.
C)Degree complete rule.
D)Work complete rule.
E)Percent complete rule.

Accepted Answer

The percent complete rule is the heart of any earned value system.The best method for assigning costs to the baseline under this rule is to establish frequent checkpoints over the duration of the work package and assign completion percentages in dollar terms.

Question 6

Which performance index is the most potentially misleading?
A)CPI
B)EV
C)CV
D)SV
E)EAC

Accepted Answer

Many times it is determined that a positive SV indicates the project is ahead of schedule and a negative SV indicates that a project is behind schedule.This is not always the case.Schedule variance does indicate whether or not the work that was planned to be completed has been completed, but it doesn't tell you if that work is critical or not.If more work than what was planned was completed, but this work was noncritical, it is possible to have a positive SV and still be behind schedule.

Question 7

Which of the following methods of variance analysis is the best indicator of how far off the budget a project will be at completion?
A)BAC
B)EAC
C)ETC
D)VAC
E)TCPI

Accepted Answer

The cost variance at completion (VAC)indicates expected actual over- or under-run cost at completion.

Question 8

The earned value of a project is the
A)Project cost to date adjusted for project scope changes.
B)Total project cost to date.
C)Cost incurred minus the planned cost.
D)Percent of the original budget that has been earned by actual work.
E)The planned time-phased baseline of the value of work scheduled.

Accepted Answer

Earned value for a task is simply the percent complete multiplied by the original budget.Stated differently, EV is the percent of the original budget that has been earned by actual work completed.

Question 9

The earned value system starts with the time-phased costs that provide the project baseline, which is called the
A)Planned budgeted value of work scheduled.
B)Planned budgeted value of work completed.
C)Earned value of work scheduled.
D)Scheduled value of work scheduled.
E)Scheduled value of work completed.

Accepted Answer

The earned value system starts with the time-phased costs that provide the project budget baseline, which is called the planned budgeted value of the work scheduled (PV).Given this time-phased baseline, comparisons are made with actual and planned schedule and costs using earned value.The earned value approach provides the missing links not found in conventional cost-budget systems.

Question 10

The first step in the project control process for measuring and evaluating project performance is to
A)Set a baseline plan.
B)Determine the project objectives.
C)Determine the project deliverables.
D)Analyze the project budget.
E)Review the project priority matrix.

Accepted Answer

The project control steps for measuring and evaluating project performance are first to set a baseline plan, then to measure progress and performance, next to compare plan against actual and finally to take action.

Question 11

A tool used to monitor past project schedule performance and current performance, and to estimate future schedule trends is a simple line chart known as a
A)Project control chart.
B)Gantt chart.
C)PERT chart.
D)Network diagram.
E)Milestone chart.

Accepted Answer

The control chart is another tool used to monitor past project schedule performance and current performance and to estimate future schedule trends.

Question 12

Nancy tells her supervisor that as of right now, $1.05 worth of work has been accomplished for each $1 worth of scheduled work.Nancy got this information from viewing the
A)SV.
B)TCPI.
C)CPI.
D)SPI.
E)PCIB.

Accepted Answer

The SPI would tell Nancy that $1.05 worth of work has been accomplished for each $1 worth of scheduled work.

Question 13

A ___________ Gantt chart is a simple and effective way to depict progress on a project.
A)Baseline
B)Control
C)Variance
D)Tracking
E)Simple

Accepted Answer

Gantt charts (bar charts)and control charts are the typical tools used for communicating project schedule status.The Gantt chart is the most favored, used and understandable.This kind of chart is commonly referred to as a tracking Gantt chart.

Question 14

In monitoring project time (schedule)performance, actual performance should be compared to
A)Budgets for the current year.
B)Top management's targets.
C)Project network schedule derived from the WBS/OBS.
D)Progress on similar past projects.
E)Previous status reports.

Accepted Answer

A major goal of progress reporting is to catch any negative variances from plan as early as possible to determine if corrective action is necessary.Fortunately, monitoring schedule performance is relatively easy.The project network schedule, derived from the WBS/OBS, serves as the baseline to compare against actual performance.

Question 15

Which of the following are required to assess the current status of a project using the earned-value cost/schedule system?
A)BAC, EAC, and ETC
B)VAC, EAC, and BAC
C)CV, SV, and BAC
D)PV, EV, and AC
E)TCPI, EV, and PV

Accepted Answer

Assessing the current status of a project using the earned value cost/schedule system requires three data elements-planned cost of the work scheduled (PV), budgeted cost of the work completed (EV), and actual cost of the work completed (AC).

Question 16

A project monitoring system involves all of the following EXCEPT
A)Determining what data to collect.
B)Determining how, when, and who will collect the data.
C)Adjusting the data.
D)Analysis of the data.
E)Reporting current progress.

Accepted Answer

A project monitoring system involves determining what data to collect; how, when, and who will collect the data; analysis of the data; and reporting current progress.

Question 17

The third step in the project control process for measuring and evaluating project performance is to
A)Review the baseline plan with top management.
B)Analyze inputs to the control system.
C)Compare the plan against actual performance.
D)Measure both progress and performance.
E)Review spending with team members.

Accepted Answer

The project control steps for measuring and evaluating project performance are first to set a baseline plan, then to measure progress and performance, next to compare plan against actual and finally to take action.

Question 18

Baseline project budgets are derived from
A)The organization's overall budget.
B)Time-phasing the work packages.
C)Top management directions.
D)The total direct, direct project overhead and G&A overhead costs.
E)The earned value system.

Accepted Answer

The earned value system starts with the time-phased costs that provide the project budget baseline, which is called the planned budgeted value of the work scheduled (PV).Given this time-phased baseline, comparisons are made with actual and planned schedule and costs using earned value.The earned value approach provides the missing links not found in conventional cost-budget systems.

Question 19

Jessica just received the following information on her project: PV = 200, EV = 300, AC = 250, BAC = 1500, EAC = 1208.In terms of cost at completion.
A)The project will currently finish under budget.
B)The project will currently finish over budget.
C)The project will currently finish on budget.
D)The project will currently finish behind schedule.
E)There is insufficient information to draw conclusions.

Accepted Answer

Since the estimated cost at completion is less than the budgeted cost at completion, at this time, the project is expected to finish under budget.

Question 20

Of the following costs, which are NOT included in baseline?
A)Suppliers
B)Equipment
C)Labor
D)Budget reserves
E)Contractors

Accepted Answer

The baseline (PV)is the sum of the cost accounts, and each cost account is the sum of the work packages in the cost account.Three direct costs are typically included in baselines-labor (contractors), equipment, and materials (suppliers).

Quiz 13: Progress and Performance Measurement and Evaluation

The cost variance for a project is calculated by

The schedule variance for a project is calculated by:

The second step in the project control process for measuring and evaluating project performance is to

The final step in the project control process for measuring and evaluating project performance is to

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

Which performance index is the most potentially misleading?

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

The earned value of a project is the

The earned value system starts with the time-phased costs that provide the project baseline, which is called the

The first step in the project control process for measuring and evaluating project performance is to

A tool used to monitor past project schedule performance and current performance, and to estimate future schedule trends is a simple line chart known as a

Nancy tells her supervisor that as of right now, $1.05 worth of work has been accomplished for each $1 worth of scheduled work.Nancy got this information from viewing the

A ___________ Gantt chart is a simple and effective way to depict progress on a project.

In monitoring project time (schedule) performance, actual performance should be compared to

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

A project monitoring system involves all of the following EXCEPT

The third step in the project control process for measuring and evaluating project performance is to

Baseline project budgets are derived from

Jessica just received the following information on her project: PV = 200, EV = 300, AC = 250, BAC = 1500, EAC = 1208.In terms of cost at completion.

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