PK0-003 · Question #17
A project manager is managing a project that is scheduled to take ten months to complete. The project is in its sixth month and $450,000 has been spent. The project budget is $990,000. Which of the fo
The correct answer is B. Planned value. To determine the budgeted cost of work scheduled by a specific point in time, a project manager will use Planned Value as an Earned Value Management metric.
Question
A project manager is managing a project that is scheduled to take ten months to complete. The project is in its sixth month and $450,000 has been spent. The project budget is $990,000. Which of the following will the project manager use to determine the budgeted cost of work scheduled?
Options
- AEstimate to completion
- BPlanned value
- CCost performance index
- DBudget at completion
How the community answered
(34 responses)- A6% (2)
- B91% (31)
- C3% (1)
Why each option
To determine the budgeted cost of work scheduled by a specific point in time, a project manager will use Planned Value as an Earned Value Management metric.
Estimate to Completion (ETC) is the estimated cost to complete all the remaining work of the project.
Planned Value (PV) is the authorized budget assigned to the work to be completed by a given date according to the schedule baseline. It represents the value of the work that should have been completed by the current point in time based on the project plan.
Cost Performance Index (CPI) is a measure of the cost efficiency of budgeted resources expressed as a ratio of earned value to actual cost.
Budget at Completion (BAC) is the total budget for the entire project.
Concept tested: Earned Value Management (EVM) - Planned Value
Source: https://www.projectmanagement.com/blog/blog-post/11835/understanding-earned-value-management--evm--part-1
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