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1. Earned Value Management combines scope, schedule, and resource measurements to assess project performance and progress. True False 2. There are three key elements for

1. Earned Value Management combines scope, schedule, and resource measurements to assess project performance and progress.

  • True
  • False

2. There are three key elements for each work package and control account. These include

  • Budget at Completion (BAC), Estimate at Completion (EAC), Actual Cost (AC)
  • Actual Cost (AC), Planned Value (PV), Earned Value (EV)
  • Schedule Performance Index (SPI, Cost Performance Index (CPI), To-Complete Performance Index (TCPI)
  • Schedule Variance (SV), Cost Variance (CV), Estimate at Completion (EAC)

3. Variances or deviations from plan are measured using Schedule Variance (SV) and Cost Variance (CV).

  • True
  • False

4. The formula for calculating Schedule Variance (SV) is:

  • SV = EV + PV
  • SV = EV/AC
  • SV = EV - PV
  • SV = CV - AC

5. The formula for calculating Cost Variance (CV) is:

  • CV = EV-AC
  • CV = EV/PV
  • CV = BAC - EV
  • CV = AC+[(BAC-EV)/(CPI x SPI)]

6. True or False. The Schedule Performance Index (SPI) is expressed as a ratio of Planned Value (PV) and Actual Cost (AC).

  • True
  • False

7. True or False. A Cost Performance Index (CPI) with a value 1.25 indicates a cost overrun.

  • True
  • False

8. The Estimate at Completion (EAC) formula is used to project the final cost of the project. The formula for EAC is represented as EAC = Actual Cost (AC) + Bottoms-Up Estimate to Complete. This can also be represented as EAC = Actual Cost (AC) + (Budget at Completion (BAC) - Earned Value (EV). Using this formula calculate the following scenario: The project you are working on has already spent $50,000. You are asked how much effort remains on the project to completion. After asking key member of your team you learn that another $25,000 is required for testing followed by $10,000 for deployment. In your original plan you budgeted $5,000 for a project completion party which will not be required due to cost overruns. What is the total of your EAC?

  • $40,000
  • $35,000
  • $50,000
  • $85,000

9. True or False. In the context of Earned Value Management, a control account is where scope, budget, actual cost, and schedule are integrated.

  • True
  • False

10. The work defined at the lowest level of work in the Work Breakdown Structure (WBS) for which cost and duration can be estimated and managed is known as:

  • Work Breakdown Structure
  • Control Account
  • Work Package
  • Planning Package

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