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PMP Practice QuestionsCost and Earned Value Management
Process Domain

Cost and Earned Value Management PMP Practice Questions

Test yourself with 10 free, scenario-based PMP practice questions on cost and earned value management, drawn from the Process domain of the exam and aligned to PMBOK 8. Work through each scenario before revealing the answer — every question includes an explanation of why the correct choice is right. For randomized, interactive practice across all topics, use the practice question tool.

Question 1 of 10

During performance review, the project manager notes that EV is lower than AC. What does this MOST likely indicate?

  1. A.The project is over budget for the work accomplished
  2. B.The project must be performing well because spending is occurring as work is being done
  3. C.No conclusion can be drawn because earned value data is not useful for project decisions
  4. D.The only correct response is to request more budget now
Show answer and explanation

Correct answer: A

Earned value analysis helps interpret cost and schedule performance in context. The right conclusion depends on how planned, earned, and actual values relate to one another. Looking at spend alone or jumping directly to budget requests bypasses the insight that performance metrics are intended to provide.

Question 2 of 10

During performance review, the project manager notes that SPI is below 1.0. What does this MOST likely indicate?

  1. A.The project must be performing well because spending is occurring as work is being done
  2. B.The project is progressing slower than planned
  3. C.No conclusion can be drawn because earned value data is not useful for project decisions
  4. D.The only correct response is to request more budget now
Show answer and explanation

Correct answer: B

Earned value analysis helps interpret cost and schedule performance in context. The right conclusion depends on how planned, earned, and actual values relate to one another. Looking at spend alone or jumping directly to budget requests bypasses the insight that performance metrics are intended to provide.

Question 3 of 10

During performance review, the project manager notes that EAC is trending above BAC. What does this MOST likely indicate?

  1. A.The project must be performing well because spending is occurring as work is being done
  2. B.No conclusion can be drawn because earned value data is not useful for project decisions
  3. C.Current performance suggests a budget overrun at completion
  4. D.The only correct response is to request more budget now
Show answer and explanation

Correct answer: C

Earned value analysis helps interpret cost and schedule performance in context. The right conclusion depends on how planned, earned, and actual values relate to one another. Looking at spend alone or jumping directly to budget requests bypasses the insight that performance metrics are intended to provide.

Question 4 of 10

During performance review, the project manager notes that CPI improves after corrective action. What does this MOST likely indicate?

  1. A.The project must be performing well because spending is occurring as work is being done
  2. B.No conclusion can be drawn because earned value data is not useful for project decisions
  3. C.The only correct response is to request more budget now
  4. D.Cost efficiency has improved relative to earlier periods
Show answer and explanation

Correct answer: D

Earned value analysis helps interpret cost and schedule performance in context. The right conclusion depends on how planned, earned, and actual values relate to one another. Looking at spend alone or jumping directly to budget requests bypasses the insight that performance metrics are intended to provide.

Question 5 of 10

During performance review, the project manager notes that VAC is negative. What does this MOST likely indicate?

  1. A.The project is forecast to finish over the original budget
  2. B.The project must be performing well because spending is occurring as work is being done
  3. C.No conclusion can be drawn because earned value data is not useful for project decisions
  4. D.The only correct response is to request more budget now
Show answer and explanation

Correct answer: A

Earned value analysis helps interpret cost and schedule performance in context. The right conclusion depends on how planned, earned, and actual values relate to one another. Looking at spend alone or jumping directly to budget requests bypasses the insight that performance metrics are intended to provide.

Question 6 of 10

During performance review, the project manager notes that TCPI based on BAC is very high. What does this MOST likely indicate?

  1. A.The project must be performing well because spending is occurring as work is being done
  2. B.Meeting the original budget will require unusually strong future cost performance
  3. C.No conclusion can be drawn because earned value data is not useful for project decisions
  4. D.The only correct response is to request more budget now
Show answer and explanation

Correct answer: B

Earned value analysis helps interpret cost and schedule performance in context. The right conclusion depends on how planned, earned, and actual values relate to one another. Looking at spend alone or jumping directly to budget requests bypasses the insight that performance metrics are intended to provide.

Question 7 of 10

During performance review, the project manager notes that EV and PV are equal but AC is higher than EV. What does this MOST likely indicate?

  1. A.The project must be performing well because spending is occurring as work is being done
  2. B.No conclusion can be drawn because earned value data is not useful for project decisions
  3. C.Schedule is on plan but cost performance is poor
  4. D.The only correct response is to request more budget now
Show answer and explanation

Correct answer: C

Earned value analysis helps interpret cost and schedule performance in context. The right conclusion depends on how planned, earned, and actual values relate to one another. Looking at spend alone or jumping directly to budget requests bypasses the insight that performance metrics are intended to provide.

Question 8 of 10

During performance review, the project manager notes that a work package is 50% complete but has spent 80% of its budget. What does this MOST likely indicate?

  1. A.The project must be performing well because spending is occurring as work is being done
  2. B.No conclusion can be drawn because earned value data is not useful for project decisions
  3. C.The only correct response is to request more budget now
  4. D.Efficiency concerns should be investigated
Show answer and explanation

Correct answer: D

Earned value analysis helps interpret cost and schedule performance in context. The right conclusion depends on how planned, earned, and actual values relate to one another. Looking at spend alone or jumping directly to budget requests bypasses the insight that performance metrics are intended to provide.

Question 9 of 10

During performance review, the project manager notes that forecasting assumptions changed after a major approved scope change. What does this MOST likely indicate?

  1. A.Cost forecasting should be recalculated using the new baseline and current performance data
  2. B.The project must be performing well because spending is occurring as work is being done
  3. C.No conclusion can be drawn because earned value data is not useful for project decisions
  4. D.The only correct response is to request more budget now
Show answer and explanation

Correct answer: A

Earned value analysis helps interpret cost and schedule performance in context. The right conclusion depends on how planned, earned, and actual values relate to one another. Looking at spend alone or jumping directly to budget requests bypasses the insight that performance metrics are intended to provide.

Question 10 of 10

During performance review, the project manager notes that management asks whether actual spend alone is enough to judge performance. What does this MOST likely indicate?

  1. A.The project must be performing well because spending is occurring as work is being done
  2. B.Cost must be interpreted alongside value earned and planned value
  3. C.No conclusion can be drawn because earned value data is not useful for project decisions
  4. D.The only correct response is to request more budget now
Show answer and explanation

Correct answer: B

Earned value analysis helps interpret cost and schedule performance in context. The right conclusion depends on how planned, earned, and actual values relate to one another. Looking at spend alone or jumping directly to budget requests bypasses the insight that performance metrics are intended to provide.

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