PM Test Center

If the EAC is 2000, the PV is 500, and the AC is 400, what is the ETC?

A. 1100
B. 1500
C. 1600
D. 1900

Answer: C. 1600
The ETC (estimate to complete) is actually quite simple. Just figure out take the EAC (estimate at completion) and subtract the AC (actual cost), or ETC = EAC-AC; the PV is irrelevant for the ETC. What you are doing is looking at the difference between the updated estimate on how much the project will cost, EAC, and how much you have already spent, AC. The result is how much more you expect to spend to complete the project, EAC.

If the BAC is 1000, the CPI is 0.9, and the SPI is 1.2, what is the EAC?

A. 833.33
B. 900
C. 1111.11
D. 1200

Answer: C. 1111.11
One method that the EAC (estimate at completion) can be calculated is BAC (budget at completion) divided by CPI (cost performance index), or EAC = BAC/CPI; the SPI is irrelevant for the EAC. Because the CPI is under 1.0, then you know that the project is not doing well. Therefore, you can conclude that the project will cost more than originally planned, which is 1000, the BAC, without even doing any math. One way to look at the problem is “If this $1000 project is only getting $0.90 of value out of every dollar so far, if we continue at this pace, how much will this project cost by the time we are done?”

One of the reports you are asked to produce is an S-curve diagram. Through your experience, you know that S-curve data is based on earned value. Therefore, you must __________ at the start of the project in order to have accurate S-curve reports.

A. Set a baseline
B. Use project management software
C. Create a contingency plan
D. Perform a variance analysis

Answer: A. Set a baseline
In order to provide earned value, a baseline must be set, usually at the beginning of the project. This will allow project managers to measure the original snapshot against actual performance.

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).