Free PMP® Sample Questions: Test Exam Cost Controlling & Earned Value Analysis


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  •   Posted on: 2021-07-14
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The PMP Certification exam includes questions on earned value management. PMP earned value questions examine the PMP candidate's cost management knowledge and experience. To successfully answer these questions in the PMP exam, you must understand the earned value management formulas and how to apply them.

 

Further Reading: How is Earned Value Calculated in Project Management?

 

Approximately 20-30 PMP Earned Value Questions will be included in the exam. And this accounts for about 10-15% of the total PMP Exam. As a result, successfully answering PMP earned value questions on the PMP exam is essential to your PMP success.

Below are 10 sample questions that will assess your understanding of project cost control, forecasting, and earned value analysis. Prepare your calculator and stay focused!

 

1. When you collect the earned value data for your project, you get the following data: PV = $1,500,000, EV = $ 1,200,000, AC = $1,000,000. You expect the factors for cost variance to continue in the same way in the future. The value of the remaining work is $1,000,000. What should be the new EAC for the project?

A. $2,400,000

B. $2,233,333

C. $2,000,000

D. $1,833,333

Correct Answer: D

Solution: EAC= BAC/CPI, BAC = 1,200,000+1,000,000=2,200,000. CPI = EV/AC = 1,200,000/1,000,000 = 1.2. EAC = 2,200,000/1.2 = 1,833,333

 

2. The latest Earned value report of the project shows CPI = 1.2, SPI = 0.8, PV = $500,000, SV = -$220,000. What is the Cost Variance of the project?

A. $486,666

B. $280,000

C. $46,666

D. $233,333

Correct Answer: C

Solution: EV= PV+SV = 500000 – 220000 = $280,000, AC = EV/CPI =280000/1.2 = $233,333. CV = EV - AC = 280000 – 233333 = $46,666

 

3. When you analyze earned value data for your project, you get the following information:

CPI = 0.84, and the EV is $48,000. How much money has been spent on the project?

A. $40,320

B. $57,145

C. $37,654

D. There is not enough information to calculate the actual cost

Correct Answer: B

Solution: CPI = EV/AC; AC = EV/CPI = 48,000/0.84 = 57,145

 

4. The project is budgeted at $1,000,000. The following earned value figures have been derived. PV=$500,000, EV = $450,000, AC= $550,000. The cost variances in the project are caused by one-time factors which are no more effective. What will be the estimate at completion for the project?

A. $1,000,000

B. $1,100,000

C. $900,000

D. $1,222,222

Correct answer: B

Solution: When the cost variance caused is one time and not expected to continue (the future work will be accomplished at the planned rate), EAC= AC+BAC-EV. EAC = 550000 + 1000000 – 450000 = 1,100,000

 

Are you up to date on the most recent changes in project management practices? Take our PMP Exam Practice Test to find out right now!

 

5. The earned value data for a project has been derived as below. PV=$400,000, EV=$400,000, AC =$600,000. What is the burn rate of the project?

A. 0.66

B. 1

C. 1.6

D. 1.5

Correct Answer: D

Solution: Burn rate is 1/CPI. CPI = EV/AC = 400000/600000 = 0.6666... Burn rate = 1/0.66666 =1.5

 

6. You are managing a telecommunications project. The project is expected to be completed in 10 months at the cost of $12000 per month. After two months, you realize that the project is 30% completed at the expense of $60,000. What are the Earned Value (EV) and the Cost Variance (CV)?

A. EV = ($16,000); CV= $26,000

B. EV = $16,000; CV= ($20,000)

C. EV = $36,000; CV= $24,000

D. EV = $36,000; CV= ($24,000)

Correct Answer: D

Solution: BAC=12000*10 = 120000, EV=30%*120000=36000, CV= EV - AC = 36000 - 60000 =-24000

 

7. You are managing a constructions project. You have completed half the project work. The total planned cost at this stage is $1000. The actual work that has been completed at this stage is worth $1200. You have spent $1500 already on the project. What is the CPI?

A. 0.5

B. 0.8

C. 4

D. 1.25

Correct Answer: B

Solution: CPI = EV/AC = 1200/ 1500 = 0.8

 

8. A software development project that you are managing has a budget at completion of $400,000. At month seven, 65% of the work was planned to be complete but stands at 50%. Actual cost is $275,000. What is the project's ETC?

A. $55,000

B. $389,855

C. $289,000

D. $275,000

Correct Answer: D

Solution: CPI = 50% *400000/ 275000 = 0.72 EAC = BAC/CPI = 400000/0.72 = 550000. ETC = EAC – AC = 550000-275000= 275000

 

9. You perform an earned value analysis for your project, resulting in the following numbers:

EV: 354,000; PV: 454,000; AC: 474,000. Which results are correct?

A. CV: +120,000; SV: +100,000

B. CV: +100,000; SV: +120,000

C. CV: -100,000; SV: -120,000

D. CV: -120,000; SV: -100,000

Correct Answer: D

Solution: CV = EV – AC = 354,000 – 474,000 = -120,000; SV = EV – PV = 354,000 – 454,000 = -100,000

 

Join SPOTO PMP Study Group for more free study materials!

 

10. During your project analysis, you understand that there is a cost-variance in the project. Further analysis shows that it is a one-time variance caused by an unexpected rework. You do not expect such a situation in the future. You would like to get the Estimate at completion you’re your project, so you perform earned value analysis and get the following data: EV = 2,000,000; PV = 1,500,000; AC = 2,500,000; BAC = 4,000,000. What is EAC?

A. 4,500,000

B. 5,000,000

C. 4,000,000

D. 5,500,000

Correct Answer: A

Solution: When the variations are one-time, then EAC = AC+BAC-EV = 2,500,000 + 4,000,000 – 2,000,000 = 4,500,000

 

Summary

Earned Value Analysis, also known as Earned Value Management, is one of the more challenging concepts in project management. Many practicing professionals are perplexed by the concepts and meanings of earned value. However, after learning with SPOTO training courses and practicing with SPOTO latest exam dumps covering real exam questions, you will find Earned Value Analysis (EVA) concept is a lot simpler than it is made out to be. Pass your PMP exam with SPOTO on the first try!

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