What is the formula to determine earned value (EV) for a program?

The correct answer is C. Percent complete times the program budget at completion. Earned Value (EV) is a core metric in Earned Value Management (EVM). The formula is: EV = % Complete × BAC (Budget at Completion). BAC represents the total authorized budget for the program. Multiplying the completion percentage by the total budget gives you the monetary value of

Program Performance Management

Question

Options

APercent complete times percent remaining in the program
BPercent completes time the program cost estimate
CPercent complete times the program budget at completion
DPercent complete times the program cost of labor and materials

How the community answered

(70 responses)

A
1% (1)
B
3% (2)
C
94% (66)
D
1% (1)

Explanation

Earned Value (EV) is a core metric in Earned Value Management (EVM). The formula is: EV = % Complete × BAC (Budget at Completion). BAC represents the total authorized budget for the program. Multiplying the completion percentage by the total budget gives you the monetary value of the work actually accomplished. Option A is nonsensical (percent complete times percent remaining). Option B contains a typo ('times' vs a formula) and references a vague 'cost estimate.' Option D limits scope to only labor and materials, which is incorrect - BAC encompasses all authorized costs.

Topics

#Earned Value Management (EVM)#Earned Value (EV)#Program Performance Measurement#Cost Management

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