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PFMP · Question #529

Performance reporting is important in a program and usually, the portfolio manager aggregates performance information from the portfolio components in order to present the related reports. Which of…

The correct answer is C. All the options. Performance reporting in portfolio management can leverage all available performance measures, making 'All the options' (C) correct. Earned Value (A) measures cost and schedule performance against the baseline (BCWP vs. BCWS/ACWP) and is standard in project/portfolio reporting…

Portfolio Performance Management

Question

Performance reporting is important in a program and usually, the portfolio manager aggregates performance information from the portfolio components in order to present the related reports. Which of the following measures can be used in performance reporting?

Options

  • AEarned Value
  • BCost Sunk
  • CAll the options
  • DCPI and SPI

How the community answered

(37 responses)
  • A
    8% (3)
  • B
    3% (1)
  • C
    86% (32)
  • D
    3% (1)

Explanation

Performance reporting in portfolio management can leverage all available performance measures, making 'All the options' (C) correct. Earned Value (A) measures cost and schedule performance against the baseline (BCWP vs. BCWS/ACWP) and is standard in project/portfolio reporting. CPI (Cost Performance Index) and SPI (Schedule Performance Index) (D) are derived Earned Value metrics that provide efficiency ratios for cost and schedule. Sunk Cost (B) - money already spent and irrecoverable - is also a relevant metric used to inform go/no-go decisions within portfolio reviews, helping decision-makers avoid the sunk cost fallacy. All three categories of measures contribute to comprehensive portfolio performance reporting.

Topics

#Performance Measurement#Earned Value Management (EVM)#Portfolio Performance#Financial Reporting

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