Scenario -1
Use the following scenario to answer questions 1-9
Company A is working on a project. The project’s budget is $ 1,000. The planned value as of today is
$400. The project is 30% completed and 60% of the budget to date has been spent:
1. Earned value for this project is:
a. $ 240.
b. $300.
c. $400.
d. $600
EV = 30%* BAC = 30% * 1000 = $ 300
2. The actual cost to date for the project is
a. $ 240.
b. $300.
c. $400.
d. $600.
AC is the amount of money spent for the work completed. The question states, 60% of the
budget to date has been spent. The budget to date is the same as the planned value (PV).
Therefore, AC = 60 %($ 400)= $ 240. Be careful. Notice the question states 60% of the budget to
date, not 60% of the total budget.
3. According to the schedule the project is
a. Ahead of schedule.
b. Behind schedule.
c. On Schedule.
d. Complete.
SV = EV – PV = 300-400 = -100
4. According to the budget , the cost variance is:
a. $ 60.
b. -$ 300.
c. -$ 0.
d. $ 400.
CV= 300-240 = 60
5. If company A continuous to spend at the same rate the project will
cost a. $ 1000.
b. $ 800.
c. $ 600.
d. $ 400.
EAC = BAC / CPI
First Calculate CPI First= EV/AC = 300/240 = 1.25
, EAC =BAC/CPI. EAC=1000/1.25 = 800
6. What is the estimate to complete (ETC)?
a. $ 1040.
b. $ 560.
c. $ 300.
d. $ 240.
ETC is a measure of how much more money needs to be spent to complete the project. The
team has spent $ 240 and the team now expects the project to cost $ 800. (The EAC is $ 800)
therefore, the team expects to spend $ 560 more.
ETC = EAC-AC = 800-240 = 560.
7. What is the variance at completion (VAC)?
a. $ 200.
b. $ 560.
c. $ 800.
d. $ 1000.
VAC is a measure of how much the team expects to under run or overrun. The BAC = 1000.
Now the team expects to finish for 800 (EAC). Therefore the team expects to under run by $
200. This is the VAC. Under runs are positive numbers; overruns are negative numbers.
8. Assuming that the BAC is still viable, what is the
TCPI. a. 0.92.
b. 1.00
c. 1.25
d. 1.50
TCPI = BAC-EV / BAC-AC = (1000-300) / 1000-240 = 0.92. The TCPI is the calculated projection of
cost performance that must to be achieved on the remaining budget to meet a specified
management goal.
9. Assuming that the BAC is no longer viable, what is the TCPI?
a. 0.92.
b. 1.00
c. 1.25
d. 1.50
If the BAC is no longer a viable number then the TCPI = (BAC-EV) / EAC-AC
TCPI – (1000-300) / (800-240) = 1.25. The TCPI is the calculated projection of cost performance
that must be achieved on the remaining budget to meet a specified management goal.
Scenario -2
You are building a pen to keep animals . The pen will have four sides, all exactly the same. Your budget
for the project is $ 400, or $ 100 per side. The schedule for the project is four days, one side per day.
You started the project on Monday morning. It is now the end of the day on Tuesday. You have 25% of
the total work done. You have spent $ 400 for the work that is completed?
10. What is the earned value for the project?
a. $ 100.
, b. $ 200.
c. $ 400.
d. $ 1600.
EV = 25% * 400 =$ 100.
11. What is the planned value as of
today? a. $ 100.
b. $ 200.
c. $ 400.
d. $ 1600.
The budget for each side is $ 100; therefore, $ 200 worth should be completed. Therefore PV =
$ 200.
12. What is the actual cost?
a. $ 100.
b. $ 200.
c. $ 400.
d. $ 1600.
AC is the amount spent for the work completed. The question states, you have spent $ 400 for the work
that is complete’, therefore AC=400.
13. The project cost variance is:
a. -$ 300.
b. -$ 200.
c. -$ 100.
d. $ 0.
CV = EV-AC = 100-400 = -300. The project s running over budget. You spent $ 400 to complete
one side ($ 100 worth of work).
14. The project schedule variance is
a. -$ 300.
b. -$ 200.
c. -$ 100.
d. $ 0.
EV-PV = 100-200 = -100
15. If the workers continue to spend at the same rate, what will be project
cost? a. $ 100.
b. $ 200.
c. $ 400.
d. $ 1600.
EAC – BAC / CPI = $ 400/ (100/400) = $ 1600
16. What is the expected variance at
completion? a. $ 1200.
b. -$ 1200.
c. $ 400.
d. -$ 400.
VAC = BAC-EAC = 400-1600 = -1200
Use the following scenario to answer questions 1-9
Company A is working on a project. The project’s budget is $ 1,000. The planned value as of today is
$400. The project is 30% completed and 60% of the budget to date has been spent:
1. Earned value for this project is:
a. $ 240.
b. $300.
c. $400.
d. $600
EV = 30%* BAC = 30% * 1000 = $ 300
2. The actual cost to date for the project is
a. $ 240.
b. $300.
c. $400.
d. $600.
AC is the amount of money spent for the work completed. The question states, 60% of the
budget to date has been spent. The budget to date is the same as the planned value (PV).
Therefore, AC = 60 %($ 400)= $ 240. Be careful. Notice the question states 60% of the budget to
date, not 60% of the total budget.
3. According to the schedule the project is
a. Ahead of schedule.
b. Behind schedule.
c. On Schedule.
d. Complete.
SV = EV – PV = 300-400 = -100
4. According to the budget , the cost variance is:
a. $ 60.
b. -$ 300.
c. -$ 0.
d. $ 400.
CV= 300-240 = 60
5. If company A continuous to spend at the same rate the project will
cost a. $ 1000.
b. $ 800.
c. $ 600.
d. $ 400.
EAC = BAC / CPI
First Calculate CPI First= EV/AC = 300/240 = 1.25
, EAC =BAC/CPI. EAC=1000/1.25 = 800
6. What is the estimate to complete (ETC)?
a. $ 1040.
b. $ 560.
c. $ 300.
d. $ 240.
ETC is a measure of how much more money needs to be spent to complete the project. The
team has spent $ 240 and the team now expects the project to cost $ 800. (The EAC is $ 800)
therefore, the team expects to spend $ 560 more.
ETC = EAC-AC = 800-240 = 560.
7. What is the variance at completion (VAC)?
a. $ 200.
b. $ 560.
c. $ 800.
d. $ 1000.
VAC is a measure of how much the team expects to under run or overrun. The BAC = 1000.
Now the team expects to finish for 800 (EAC). Therefore the team expects to under run by $
200. This is the VAC. Under runs are positive numbers; overruns are negative numbers.
8. Assuming that the BAC is still viable, what is the
TCPI. a. 0.92.
b. 1.00
c. 1.25
d. 1.50
TCPI = BAC-EV / BAC-AC = (1000-300) / 1000-240 = 0.92. The TCPI is the calculated projection of
cost performance that must to be achieved on the remaining budget to meet a specified
management goal.
9. Assuming that the BAC is no longer viable, what is the TCPI?
a. 0.92.
b. 1.00
c. 1.25
d. 1.50
If the BAC is no longer a viable number then the TCPI = (BAC-EV) / EAC-AC
TCPI – (1000-300) / (800-240) = 1.25. The TCPI is the calculated projection of cost performance
that must be achieved on the remaining budget to meet a specified management goal.
Scenario -2
You are building a pen to keep animals . The pen will have four sides, all exactly the same. Your budget
for the project is $ 400, or $ 100 per side. The schedule for the project is four days, one side per day.
You started the project on Monday morning. It is now the end of the day on Tuesday. You have 25% of
the total work done. You have spent $ 400 for the work that is completed?
10. What is the earned value for the project?
a. $ 100.
, b. $ 200.
c. $ 400.
d. $ 1600.
EV = 25% * 400 =$ 100.
11. What is the planned value as of
today? a. $ 100.
b. $ 200.
c. $ 400.
d. $ 1600.
The budget for each side is $ 100; therefore, $ 200 worth should be completed. Therefore PV =
$ 200.
12. What is the actual cost?
a. $ 100.
b. $ 200.
c. $ 400.
d. $ 1600.
AC is the amount spent for the work completed. The question states, you have spent $ 400 for the work
that is complete’, therefore AC=400.
13. The project cost variance is:
a. -$ 300.
b. -$ 200.
c. -$ 100.
d. $ 0.
CV = EV-AC = 100-400 = -300. The project s running over budget. You spent $ 400 to complete
one side ($ 100 worth of work).
14. The project schedule variance is
a. -$ 300.
b. -$ 200.
c. -$ 100.
d. $ 0.
EV-PV = 100-200 = -100
15. If the workers continue to spend at the same rate, what will be project
cost? a. $ 100.
b. $ 200.
c. $ 400.
d. $ 1600.
EAC – BAC / CPI = $ 400/ (100/400) = $ 1600
16. What is the expected variance at
completion? a. $ 1200.
b. -$ 1200.
c. $ 400.
d. -$ 400.
VAC = BAC-EAC = 400-1600 = -1200
