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