EVM PRACTICE QUESTIONS UPDATED A+ GRADED ANSWERS 2024-2025, Exams of Business Economics

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EVM PRACTICE QUESTIONS

UPDATED A+ GRADED ANSWERS

You are the project manager on a project that has $800,000 software development effort. There are two teams of programmers that will work for six month for a total of 10,000 hours. According to the project schedule your team should be done with 38% of the work. As of today, the project is 40% complete while 50% budget has been used. What is the BAC, AC, PV, EV, CV, CPI, SV, SPI? Is the project over/under budget? Is the project ahead/behind schedule? - ANS-BAC = $800,000 (given) AC = $400,000 (50% budget used) PV = BAC * Planned % Complete = 800,000 * 38 = $304, EV = BAC * Actual % Complete = 800,000 * 40 = $320, CV = EV - AC = 320,000 - 400,000 = - 80, CPI = EV / AC = 320,000 / 400,000 = 0. SV = EV - PV = 320,000 - 304,000 = 16, SPI = EV / PV = 320,000 / 304,000 = 1. CPI is less than 1 = over budget SPI is over 1 = ahead of schedule Your project is scheduled for 2 years. There are six different teams working on five major functional areas. Some teams are ahead of schedule while others are falling behind. There are cost overruns in some areas but you've also saved costs in others. Due to all this, it is difficult to understand whether

What is the Cost Variance (CV)? - ANS-CV = EV - ACCV = $1000 - $800 = $200Note that the Planned Value (PV) is not used in the calculation. A project with Earned Value (EV) = $250, Actual Cost (AC) = $200 and Planned Value (PV) = $350. What is the Schedule Performance Index (SPI) & CPI? The SV and the CV? Under budget & schedule or not? - ANS-SPI = EV / PV SPI = $250 / $350 = 0. CPI = EV/ AC CPI = $250/$200 = 1. SV = EV - PV SV $250-$350= - $ CV = EV - AC CV = $250- $200= $ Under budget (1.25) & behind schedule (0.71) A project with Earned Value (EV) = $250, Actual Cost (AC) = $200 and Planned Value (PV) = $350. What is the Cost Performance Index (CPI)? - ANS-CPI = EV / AC CPI = $250 / $200 = 1. For a project with Estimate at Completion (EAC) = $120,000 and Cost Performance Index (CPI) is 0.90. What is the Budget at Completion (BAC)? - ANS-As no information is given on the future performance of the project, we could safely assume that the project will spend at the same rate.

So we will make use of the formula: EAC = BAC / CPI $120,000 = BAC / 0. BAC = $120,000 * 0.90 = $108, You are the project manager of a housing project in which a total of 10 houses are to be build over 10 months (1 house per month). The total budget for the housing project is $1,000,000. The project is now at the end of the 6th month with 5 houses built and $500,000 spent. The project is behind schedule owing to a work strike for a month. The Cost Performance Index (CPI) for the project is: - ANS-The formula to be used to calculate CPI is: CPI = EV / AC CPI = $500,000 / $500,000 = 1. You are the project manager of a road paving project. A total of 10km of road is to be paved over a 5 - month period. The total budget for the project is $10,000. The project is now at the end of the 3rd month with 8km of road paved and $8,000 spent. The SPI, CPI, SV & CV? The EAC? Is on budget & schedule? - ANS-2km of road per month. At the end of 3rd month, the PV should be $6,000 (for 6km of road). SPI = EV / PV SPI = $8,000 / $6,000 = 1. CPI = EV/AC CPI= $8000/$8000 = 1 SV = EV-PV SV = $8000 - $6000 = $

VAC = $2,000,000 - $2,100,000 = - $100,

CPI<1 and CV is negative, therefore project is over budget SPI>1 and SV is positive, therefore project is ahead of schedule A project with... Earned Value (EV) = $1000, Actual Cost (AC) = $ Planned Value (PV) = $800. Total budget (BAC) = $1, What is the Estimate at completion (EAC)? - ANS-EAC = BAC/CPI EAC = $1200/1.25 = $ CPI = EV /AC = $1000/$800 = 1. A project with... Earned Value (EV) = $1000, Actual Cost (AC) = $ Planned Value (PV) = $800. Total budget (BAC) = $ What is the Estimate at completion (EAC)? - ANS-EAC = BAC/CPI EAC = $2000/0.83 = $ CPI = EV /AC = $1000/$1200 = 0.