PK0-004 · Question #785
Which of the following indicators would help the project manager to determine the financial status of the project?
The correct answer is C. EV. Earned Value (EV) is the foundational metric in Earned Value Management (EVM) that represents the budgeted value of work actually completed to date. It is the core financial performance indicator because it translates physical progress into monetary terms, enabling meaningful…
Question
Which of the following indicators would help the project manager to determine the financial status of the project?
Options
- ACV
- BSV
- CEV
- DPV
- ECOQ
- FAC
- GBAC
How the community answered
(37 responses)- B3% (1)
- C89% (33)
- F5% (2)
- G3% (1)
Explanation
Earned Value (EV) is the foundational metric in Earned Value Management (EVM) that represents the budgeted value of work actually completed to date. It is the core financial performance indicator because it translates physical progress into monetary terms, enabling meaningful comparison against what was planned (PV) and what was spent (AC). Without EV, you cannot calculate Cost Variance (CV = EV − AC) or the Cost Performance Index (CPI). While AC shows what has been spent and BAC shows the total budget, only EV captures the financial value of work accomplished - making it the primary indicator of true financial status.
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