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1. 1.

Question

You are managing a project with budget at completion (BAC) \$ 80,000. The actual cost to
date you have seen is \$ 25,000 and earned value is \$ 17,000. You calculate estimate to
complete (ETC) to \$ 75,000 by doing bottom-up sum of all costs. After so many calculations,
what is the estimate at completion (EAC) for the project?

 \$ 57,000
 \$ 100,000
 \$ 60,000
 \$ 53,000

2. 2. Question

You are the project manager and want to calculate TCPI based on EAC for your project. The
data you have with you is BAC: \$ 135,000, earned value for your project : \$ 45,000, actual
costs : \$ 70,000 and EAC is \$130,000. What is the TCPI that you will get from these values?

 1.1
 0.9
 1.5
 0

3. 3. Question

Ray is the project manager of a project having budget \$18,000 and is expected to last for 12
months. The work and budget is spread evenly across all 12 months. The current CPI of the
project is 0.9. What will be the Variance at Completion for Ray’s project?

 -\$ 1,500
 -\$ 2,000
 \$ 20,000
 \$ 19,000

4. 4. Question
Earned value analysis of your project shows the following values: EV = 80,000, ETC = 90,000,
EAC = 180,000, PV = 100,000, AC = 80,000. Which of the following is true regarding the
project?

 The project is ahead of schedule and on budget

 The project is on schedule and below budget
 The EAC is incorrect
 The project is behind schedule and on budget
5. 5. Question

A new project manager in your company is asked to make a report for a project where the
work is performed at the budgeted rate. He asks for your help and provide these values to you
BAC = \$ 35,000, Earned value (EV) = \$25,000, planned value (PV) = \$24,000 and actual cost
(AC) = \$ 28,000. What is the value of Estimate At Completion (EAC) ?

 \$ 24,000
 \$ 36,000
 \$ 38,000
 37,000

6. 6. Question

Calculate EAC with values given PV = 85, EV = 100, BAC = 380, AC = 92, CV = 3, ETC = 280
and variances from the BAC are expected to continue at the same rate.

 349.6
 348.3
 402.4
 351.4

7. 7. Question

As a project manager find out schedule variance with the following values provide, EV = 81
and SPI = 0.9 .

 Cannot be calculated based on these numbers

 -7
 -8
 -9

8. 8. Question

Ruby’s project metrics says that her project has for SPI of .83 and CPI of 1.3. How cans
Ruby’s Project status BEST described?

 Project is ahead of schedule and under budget

 Project is behind schedule and over budget
 Project is behind schedule and under budget
 Project is ahead of schedule and over budget

9. 9. Question

Sam is managing a project having total planned value (PV) as \$ 300,000. After 4.5 months ,
the actual costs incurred turned out to be \$405,000. Sam is trying to find out that how he can
limit the actual cost of the project. Out of the following what is the option Sam has?

 Actual cost can be three times the planned value

 Actual cost can be two times the planned value
 Actual cost can be four times the planned value
 The AC will not have an upper limit

10. 10. Question

A project is estimated to cost \$ 70,000 with a timeline of 60 days. After 30 days, the project
manager finds that 50% of the project is complete and Actual costs are \$ 50,000. Calculate the
Cost Performance Index (CPI)?

 CPI = 1
 CPI = 0.8
 CPI = 0.6
 CPI = 0.7

11. 11. Question

You are managing a project which is estimated to cost \$ 300,000 with a timeline of 10 months.
Due to some reasons schedule was slightly delayed and the net result was that there was
some additional cost in the project. At the end of the third month, you review the project and
find that the project is 30% complete and Actual Costs are \$ 50,000. The Estimate to complete
(ETC) for the project would now be:

 \$200,000
 \$210,000
 \$230,000
 \$220,000

12. 12. Question

Calculate how much would be the ETC with values PV = 105, EV = 115, BAC = 440, AC =
105, CV = 4, ETC = 330, EAC =410. The ETC is given as 330. However, how much would the
Estimate to Complete be if we assume that current variances are thought to be atypical?

 330
 325
 305
 295
13. 13. Question

You are managing two projects from a single Business Unit and happy over the success of
both the projects as both projects are regarding as strategically beneficial and have been
finishes by over 85%. The project sponsor requested earned value data on these two
concurrent projects from you and these both projects are equally important for the sponsor.
You provide the following information to the sponsor:

Project A:
PV: \$1,900,000
EV: \$2,400,000
AC: \$2,100,000

Project B:
PV: \$2,100,000
EV: \$1,600,000
AC: \$1,700,000

After reviewing the data provided to him, the sponsor considers to shift some resources from
project A to project B to speed up the second project which is currently behind schedule.
What is the most likely outcome of such a measure?

 To increase cost efficiency - Changing team assignments during late course of a project
typically increases cost efficiency.
 To increase time efficiency - Changing team assignments during late course of a
project typically increases time efficiency
 According to the law of diminishing returns, the consolidated cost variance of the two
projects will decrease.
 According to the law of diminishing returns, the consolidated cost variance of the two
projects will increase.

14. 14. Question

Which of the following statements is NOT true regarding EV (Earned value) of a project?

 The cost performance index is calculated using earned value and actual cost
 The schedule variance is the difference between the earned value and the planned
value
 The earned value is the value of work to be completed in terms of the approved budget
 The earned value is measured against the performance measurement baseline

15. 15. Question

You are the project manager of a software enhancement project, where the application needs
to be migrated to the new version of the software and along with it a new module need to be
added. The planned value of the software version enhancement is \$100,000 and planned
value for new module to be added is \$ 300,000. After 5 months, you do a performance
measurement analysis to see how you are doing. The analysis showed that you are not ahead
of schedule and actual costs for the version enhancement and new module were \$115,000
and \$350,000 and up to this point version update is 100% complete and module is only 80%
complete. If you calculate of CPI at this point in the project, what it would be?

 0.84
 1.5
 0.67
 0.73

1.B

2.c

TCPI when calculated based on EAC can be calculated by formula (BAC-EV)/(EAC-

AC) which when implemented in this scenario gives us (135000 − 45000) / (130000 − 70000)
= 90000 /60000 = 1.5

3.b

Variance at Completion = \$18,000 – \$20,000 = -\$2,000

4.d

The project is behind schedule because our Earned Value tells us that we have earned only
80,000 and the Planned Value shows that at this time in the project we should have earned
100,000. Therefore we are 20,000 behind schedule. We are on budget because both our
Actual Cost and Earned Value are 80,000

5.c

When project work is performed at budgeted rate EAC can be calculated using the formula
(EAC) = AC + BAC – EV
After putting the values of all, it comes out to be \$ 28,000 + \$ 35,000 – \$ 25,000 = \$ 38,000

6.a

Explanation – The formula for calculating the Estimate at Completion (EAC) if we expect the
variances to continue at the current rate is EAC=BAC/CPI. However, the question does not
give you the CPI.

So you first have to calculate the CPI: CPI = EV / AC = 100 / 92 = 1.0869

Now you can calculate the EAC: EAC = BAC / CPI = 380 / 1.0869 =349.61

7.d

Formula to calculate SV = EV – PV

No value for PV is provided, it can be calculated using the formula SPI = EV /PV

PV = EV / SPI = 81 / 0.9 = 90

Implementing the values in formula SV = EV – PV we get 81 – 90 = -9

8.c

SPI is Schedule Performance Index which indicates the efficiency of the time utilized on the
project. If SPI is above 1 – it indicates efficient utilization of time allocated to the project and
SPI lower than 1 shows team is not utilizing time allocated for the project efficiently. The
question says SPI of the project is .83 that means – Project is behind schedule.

CPI is Cost Performance Index showing the efficiency of the utilization of the resources on the
project. If value of CPI is above 1, it indicates good utilization of the resources allocated to the
project and lower than 1 value of CPI shows poor utilization of resources in the project.
Question says CPI is 1.3 that means – Project is doing good and under budget.

9.d

10.d

Cost Performance Index (CPI) is measure of cost efficiency of budgeted resources. It is

expressed as ratio of earned value to actual cost i.e. CPI = EV/AC where EV is the Earned
Value and AC is the Actual Cost.
Earned Value = 50% of \$ 70,000 = \$ 35,000 since 50% of the project is complete.

Hence CPI = 35,000 / 50,000 = 0.7

A value less than 1 of CPI indicates cost overruns in the projects which is quite apparent also
in the current scenario.

11.b

Actual Cost given as \$ 50,000 (not required in this calculation though)

EV, Earned Value = (3/ 10 ) * 300,000 = \$90,000 (as 30% project of the project is complete )

Implementing formula, ETC = \$300,000 – \$90,000 = \$210,000

12.b

The formula for calculating the ETC when variances are atypical is ETC =

BAC-EV. Therefore you can it as calculate 440 – 115 = 325

13.c

PV – Planned value , EV – Earned value and AC – Actual cost , these parameters can
provide the cost variance of the projects (CV = EV- AC). Cost Variance is very important
factor to measure project performance by giving information that is how much over or under
budget the project is. Cost Variance for Project A = \$2,400,000 – \$2,100,000 = \$300,000 and
CV for project B = \$1,600,000 – \$1,700,000 = -\$100,000. Positive CV means project is under
budget and negative value of CV project is over budget. So by shifting resources from Project
A to B the consolidated cost variance of both the projects will decrease and help project B to
be on the right track and right schedule.

14.c

Options A, B and D are correct regarding EV. Option C Points towards Planned value not
Earned value. Definition of planned value – Planned Value (PV) is the authorized budget
assigned to work to be accomplished for an activity or WBS component.

15.d
Get total actual costs of the project – \$115,000 + \$350,000 = \$465,000

\$340,000