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Process Domain

Earned Value Management PMP Practice Questions

Test yourself with 12 free, scenario-based PMP practice questions on 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 12

Your project has a BAC of $500,000. At the status date, the EV is $200,000 and the AC is $250,000. What does this tell you about project performance?

  1. A.The project is over budget for the work completed
  2. B.The project is under budget and ahead of schedule
  3. C.The project has spent more than the planned budget allocation
  4. D.The project is on schedule but has scope issues
Show answer and explanation

Correct answer: A

Cost Performance Index (CPI) = EV / AC = 200,000 / 250,000 = 0.8. A CPI < 1 means you are spending more than the value earned — the project is over budget. We cannot determine schedule performance without PV. The project has not necessarily overspent its total budget — it is over budget for work completed to date.

Question 2 of 12

A construction project has a BAC of $800,000. After six months, the PV is $320,000, the EV is $280,000, and the AC is $300,000. What is the Schedule Performance Index (SPI) and what does it indicate?

  1. A.SPI = 0.875 — the project is progressing at 87.5% of the planned rate and is behind schedule
  2. B.SPI = 1.07 — the project is slightly ahead of schedule
  3. C.SPI = 0.93 — the project is progressing at 93% of the planned rate and is behind schedule
  4. D.SPI = 1.14 — the project is ahead of schedule
Show answer and explanation

Correct answer: A

SPI = EV / PV = $280,000 / $320,000 = 0.875. An SPI less than 1.0 indicates the project is behind schedule, completing only 87.5 cents of planned work for every $1 of work planned. Note: the CPI = EV / AC = $280,000 / $300,000 = 0.933, meaning the project is also slightly over budget. SPI of 0.93 would require EV/PV = 0.93, which is not the case here.

Question 3 of 12

Your project has a BAC of $1,200,000. The current CPI is 0.75 and the EV to date is $450,000. Using the EAC formula based on current CPI performance, what is the Estimate at Completion (EAC)?

  1. A.$1,350,000
  2. B.$1,600,000
  3. C.$1,500,000
  4. D.$900,000
Show answer and explanation

Correct answer: B

When future performance is expected to match current CPI, EAC = BAC / CPI = $1,200,000 / 0.75 = $1,600,000. This formula assumes the cost variance trend will continue throughout the project. AC = EV / CPI = $450,000 / 0.75 = $600,000. ETC = EAC - AC = $1,600,000 - $600,000 = $1,000,000 remains to be spent. The other options result from incorrect formula application.

Question 4 of 12

A software project has: BAC = $500,000, AC = $180,000, EV = $150,000, PV = $200,000. The sponsor asks how much MORE money is needed to complete the project, assuming future work performs at the planned rate. What is the Estimate to Complete (ETC)?

  1. A.$320,000
  2. B.$366,667
  3. C.$350,000
  4. D.$300,000
Show answer and explanation

Correct answer: C

When future work is assumed to perform at the original planned rate (CPI = 1.0 going forward), ETC = BAC - EV = $500,000 - $150,000 = $350,000. This formula (ETC = BAC - EV) is used when the variances to date are considered atypical and future performance will revert to the plan. If you assumed current CPI (0.833) would continue: ETC = (BAC - EV) / CPI = $350,000 / 0.833 = $420,204, giving EAC = $600,204 (not offered). this option applies the current CPI to remaining work incorrectly.

Question 5 of 12

Your project must be completed within its $600,000 BAC. Currently: EV = $240,000, AC = $270,000. What is the To-Complete Performance Index (TCPI) needed to finish within the original BAC?

  1. A.TCPI = 0.91 — the required efficiency for remaining work is below current performance, suggesting the project has more budget flexibility than the CPI alone would indicate.
  2. B.TCPI = 1.0 — maintaining current efficiency is sufficient to complete the project within the BAC, indicating no change in cost management approach is required.
  3. C.TCPI = 0.85 — the project can relax cost efficiency for remaining work, indicating the current spending rate leaves more budget headroom than needed to meet the BAC.
  4. D.TCPI = 1.18 — the project must be significantly more efficient than current performance to meet the BAC
Show answer and explanation

Correct answer: D

TCPI (based on BAC) = (BAC - EV) / (BAC - AC) = ($600,000 - $240,000) / ($600,000 - $270,000) = $360,000 / $330,000 = 1.09. The closest answer reflecting above-1.0 efficiency is B. A TCPI > 1.0 means the remaining work must be done more efficiently than current performance (current CPI = EV/AC = 240,000/270,000 = 0.889). Since TCPI > current CPI, the BAC target is increasingly difficult to achieve. Note: when TCPI > 1.10, the target is considered unrealistic by most practitioners.

Question 6 of 12

A project with BAC = $400,000 is at month 4 of a planned 10-month schedule. PV = $160,000, EV = $120,000, AC = $140,000. What are the Cost Variance (CV) and Schedule Variance (SV)?

  1. A.CV = -$20,000 (over budget); SV = -$40,000 (behind schedule)
  2. B.CV = +$20,000 (under budget); SV = -$40,000 (behind schedule)
  3. C.CV = -$20,000 (over budget); SV = +$40,000 (ahead of schedule)
  4. D.CV = -$40,000 (over budget); SV = -$20,000 (behind schedule)
Show answer and explanation

Correct answer: A

CV = EV - AC = $120,000 - $140,000 = -$20,000. A negative CV means the project is over budget (spent more than the value earned). SV = EV - PV = $120,000 - $160,000 = -$40,000. A negative SV means the project is behind schedule (completed less work than planned). Both variances are negative, indicating the project is both over budget and behind schedule.

Question 7 of 12

A project manager is reviewing performance data: BAC = $250,000, EV = $175,000, AC = $160,000, PV = $200,000. The project end date is fixed. Which statement BEST describes the project's current status?

  1. A.The project is over budget and ahead of schedule
  2. B.The project is under budget and behind schedule
  3. C.The project is under budget and ahead of schedule
  4. D.The project is over budget and behind schedule
Show answer and explanation

Correct answer: B

CPI = EV / AC = $175,000 / $160,000 = 1.094. CPI > 1 means the project is under budget (earning more value per dollar spent). SPI = EV / PV = $175,000 / $200,000 = 0.875. SPI < 1 means the project is behind schedule (completing less work than planned). Therefore the project is under budget but behind schedule. The CV = EV - AC = +$15,000 (favorable) and SV = EV - PV = -$25,000 (unfavorable) confirm this analysis.

Question 8 of 12

At project completion, the final AC is $920,000 and the BAC was $800,000. What is the final Cost Variance (CV) and what does it mean?

  1. A.CV = +$120,000; the project came in under budget
  2. B.CV = $0; the project met its budget since EV equals BAC at completion
  3. C.CV = -$120,000; the project exceeded its budget by $120,000
  4. D.CV cannot be calculated without knowing the EV
Show answer and explanation

Correct answer: C

At project completion, all planned work is complete, so EV = BAC = $800,000. CV = EV - AC = $800,000 - $920,000 = -$120,000. A negative final CV means the project spent $120,000 more than budgeted. CPI at completion = $800,000 / $920,000 = 0.87. this option is incorrect because at completion, EV always equals BAC by definition — all work has been accomplished.

Question 9 of 12

You are 60% through your project. BAC = $300,000, AC = $210,000, EV = $180,000. The project sponsor demands the project must finish within the original BAC. Calculate the TCPI to finish within BAC and assess feasibility.

  1. A.TCPI = 0.90; the project can afford to reduce efficiency slightly
  2. B.TCPI = 1.0; the project is exactly on track to meet the BAC
  3. C.TCPI = 1.20; challenging but achievable with process improvements
  4. D.TCPI = 1.33; highly unlikely to achieve since it requires 33% more efficiency than planned
Show answer and explanation

Correct answer: D

TCPI (to BAC) = (BAC - EV) / (BAC - AC) = ($300,000 - $180,000) / ($300,000 - $210,000) = $120,000 / $90,000 = 1.333. This means the remaining work must be done 33% more efficiently than planned — at a much higher rate than the current CPI = EV / AC = $180,000 / $210,000 = 0.857. A TCPI significantly above 1.0, especially when far above the current CPI, makes the BAC target practically unrealistic and warrants a revised EAC.

Question 10 of 12

A project manager calculates EAC = AC + (BAC - EV). When is this formula MOST appropriate to use?

  1. A.When current variances are considered atypical and future work is expected to proceed at the originally planned rate.
  2. B.When current cost variances are expected to continue at the same rate through project completion
  3. C.When the original estimate is considered fundamentally flawed and must be re-estimated from scratch
  4. D.When both CPI and SPI must be factored into the estimate
Show answer and explanation

Correct answer: A

EAC = AC + (BAC - EV) assumes future work will be performed at the planned rate (ETC = BAC - EV), meaning today's variances are seen as one-time anomalies. When variances are expected to continue: use EAC = BAC / CPI. When re-estimating from scratch: use EAC = AC + ETC (new bottom-up estimate). When both CPI and SPI matter: use EAC = AC + [(BAC - EV) / (CPI × SPI)]. Choosing the right EAC formula depends on the management assumption about future performance.

Question 11 of 12

A project has PV = $450,000, EV = $500,000, AC = $480,000, BAC = $900,000. The project manager needs to report EAC assuming current efficiency continues. What is the EAC?

  1. A.$900,000
  2. B.$864,000
  3. C.$880,000
  4. D.$432,000
Show answer and explanation

Correct answer: B

CPI = EV / AC = $500,000 / $480,000 = 1.0417. EAC = BAC / CPI = $900,000 / 1.0417 = $864,000. Wait — let me recalculate: $900,000 / 1.0417 = $864,038 ≈ $864,000. The answer is A ($864,000). The project is performing better than planned (CPI > 1), so the EAC is less than the BAC. Explanation correction: EAC = $900,000 / (500,000/480,000) = $900,000 × (480,000/500,000) = $864,000. The project is under budget and ahead of schedule — a favorable position.

Question 12 of 12

A project manager is reporting to the sponsor. The project has: EV = $320,000, PV = $400,000, AC = $350,000, BAC = $800,000. Calculate the Variance at Completion (VAC) if the current CPI is expected to continue.

  1. A.VAC = -$75,000, meaning the project will exceed the budget by $75,000
  2. B.VAC = +$75,000, meaning the project will finish under budget
  3. C.VAC = -$75,714, meaning the project will exceed the budget by approximately $75,700
  4. D.VAC = $0, meaning the project will finish exactly on budget
Show answer and explanation

Correct answer: C

CPI = EV / AC = $320,000 / $350,000 = 0.9143. EAC = BAC / CPI = $800,000 / 0.9143 = $874,924 (approximately). VAC = BAC - EAC = $800,000 - $874,924 = -$74,924 ≈ -$75,000 (B is closest). A negative VAC means the project is forecasted to exceed its budget. The slight rounding difference between A and B is explained by rounding in intermediate calculations. The key insight: VAC = BAC - EAC represents the expected cost overrun or underrun at project completion.

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