CAPM · Question #65
What does earned value (EV) measure?
The correct answer is A. Budgeted work that has been completed. Earned Value (EV) measures the budgeted cost of work that has actually been completed, representing the monetary value of progress made on a project.
Question
Options
- ABudgeted work that has been completed
- BTotal costs incurred while accomplishing work
- CBudget associated with planned work
- DCost efficiency of budgeted resources
How the community answered
(26 responses)- A96% (25)
- C4% (1)
Why each option
Earned Value (EV) measures the budgeted cost of work that has actually been completed, representing the monetary value of progress made on a project.
EV, also called Budgeted Cost of Work Performed (BCWP), quantifies the value of completed work in terms of the approved budget allocated to that work. It is calculated as the percentage of work completed multiplied by the budget at completion (BAC). EV is central to earned value analysis because it allows comparison of planned versus actual progress in financial terms.
Total costs incurred while accomplishing work describes Actual Cost (AC), not EV.
Budget associated with planned work describes Planned Value (PV), which represents the authorized budget for scheduled work.
Cost efficiency of budgeted resources describes the Cost Performance Index (CPI), which is a ratio derived from EV and AC, not EV itself.
Concept tested: Earned value definition in EVM
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
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