PM Test Center

One of your monthly reports claim that your project has a SV of -1000. How would you describe it to your sponsor?

A. The project is behind schedule
B. The project is ahead of schedule
C. Impossible to have a negative SV
D. Not enough information

Answer: A. The project is behind schedule
SV (schedule variance) is simply a measure of how the project is performing in terms of schedule. A positive number is good, ahead of schedule, while a negative number is bad, behind schedule. SV is derived from EV (earned value) minus PV (planned value).

One of your monthly reports claim that your project has a CV of 2000. How would you describe it to your sponsor?

A. The project is $2000 over budget
B. The project is $2000 under budget
C. CV of anything over 1000 is irrelevant
D. Not enough information

Answer: B. The project is $2000 under budget
CV (cost variance) is simply a measure of how the project is performing in terms of cost. A positive number is good, under budget, while a negative number is bad, over budget. CV is derived from EV (earned value) minus AC (actual cost).

Six months into a year-long project your CPI is 0.8. However, your SPI is 1.2. This means that the project is:

A. Ahead of schedule and under budget
B. Ahead of schedule and over budget
C. Behind schedule and under budget
D. Behind schedule and over budget

Answer: B. Ahead of schedule and over budget
For both Cost Performance Index (CPI) and Schedule Performance Index (SPI), 1.0 is exactly as planned, over 1.0 is good and under 1.0 is bad. So in this case, the CPI is bad and SPI is good. In this example, the CPI means you are getting $0.80 of value out of every $1 spent (see CPI — what is it trying to tell me?) while the SPI means you are progressing at 120% (i.e. 20% better than planned) of the baseline.

As the project manager with a cost conscience sponsor, you have been monitoring earned value throughout the year long project. At the halfway point, you report that the CPI is 0.8. This means that the project is:

A. Ahead of schedule
B. Under budget
C. Behind schedule
D. Over budget

Answer: D. Over budget
The Cost Performance Index (CPI) determines how much value you are earning per $1 spent. A CPI of 1.0 means you are on target and means that for every $1 you are putting into the project, you are getting $1 of value in return. Therefore, a CPI of 1.5 means that you are getting $1.50 for every $1 you put in, which is a good thing. Conversely, a CPI of 0.8 represents only getting $0.80 per $1, not so good. In short, over 1.0 is good, under 1.0 is bad.

If EV = 25,000, PV = 30,000, and AC = 29,000, what is the SPI?

A. 0.83
B. 0.86
C. 1.16
D. 1.20

Answer: A. 0.83
SPI (Schedule Performance Index) is calculated by EV (Earned Value)/PV (Planned Value). The 0.83 means that the project is progressing at 83% of the baseline.

If EV = 25,000, PV = 30,000, and AC = 29,000, what is the CPI?

A. 0.83
B. 0.86
C. 1.16
D. 1.20

Answer: B. 0.86
CPI (Cost Performance Index) is calculated by EV (Earned Value)/AC (Actual Cost). The 0.86 means that the project is getting 86 cents out of every dollar.

You are halfway through your project and your sponsor would like to know how much more the project is expected to cost from now until the end. What earned value metric should you use?

A. CV
B. AC
C. EAC
D. ETC

Answer: D. ETC
ETC (Estimate to Complete) tells you that the project is expected to cost x dollars to complete. This is derived from how much the project is expected to cost currently (EAC) and how much was already spent (AC).

If EV = 25,000, PV = 30,000, and AC = 29,000, what is the SV?

A. -5,000
B. -1,000
C. 1,000
D. 5,000

Answer: A. -5,000
SV (Schedule Variance) is calculated by EV (Earned Value) – PV (Planned Value). The -5,000 means that the project is behind schedule.

If EV = 25,000, PV = 30,000, and AC = 29,000, what is the CV?

A. -1,000
B. -4,000
C. 1,000
D. 4,000

Answer: B. -4,000
CV (Cost Variance) is calculated by EV (Earned Value) – AC (Actual Cost). The -4,000 means that the project is $4,000 over budget.

You are halfway through your project and your sponsor would like to know how much the project is expected to cost when it is completed. What earned value metric should you use?

A. CV
B. AC
C. EAC
D. ETC

Answer: C. EAC
EAC (Estimate at Completion) tells you that the project is expected to cost x dollars. This is derived from how much you thought it would cost from the beginning (BAC) and what the rate of spending is (CPI).