AACE Earned Value Professional (EVP)

Per ANSI/EIA-748 Earned Value Management Systems standard, the FIRST of the five major process groups is:

• APlanning, Scheduling, and Budgeting
• BOrganizing
• CAccounting Considerations
• DAnalysis and Management Reports

A Control Account is BEST defined as:

• AThe lowest level of the WBS where work is performed
• BThe intersection of a WBS element and an OBS element where scope, schedule, and budget co…
• CA bank account for project payments
• DA risk register entry

Planning Packages (PPs) within a Control Account contain:

• AWork that is currently being executed
• BFar-term scope that has not yet been decomposed into detailed work packages
• CAlready-completed work
• DRisk reserves

The Performance Measurement Baseline (PMB) is BEST defined as:

• AThe contract value
• BThe time-phased budget for all authorized work plus contingency for known-unknowns, exclu…
• CActual cost incurred
• DThe forecast EAC

Earned Value (EV / BCWP) for a work package at a given status date is:

• AThe actual cost charged to the work package
• BThe budgeted value of the work that has actually been completed in the work package, comp…
• CThe total budget at completion
• DThe remaining budget

Which percent-complete technique credits work as 50% at start and 50% at finish, with NO intermediate credit?

• A0/100
• B50/50
• CWeighted milestones
• DApportioned effort

Level of Effort (LOE) earned value technique:

• AEarns EV equal to AC each reporting period (so SPI = 1 and CPI = 1 by definition for LOE…
• BEarns 50% at start, 50% at finish
• CEarns 100% at start
• DEarns based on physical progress

Apportioned Effort earned value technique applies to:

• AStand-alone discrete work
• BEffort that has a direct, supporting relationship to another discrete (base) work package…
• CProject management overhead
• DMaterial purchases

Cost Performance Index (CPI) and Schedule Performance Index (SPI) at a given status date are:

• ACPI = AC/EV; SPI = PV/EV
• BCPI = EV/AC; SPI = EV/PV
• CCPI = EV/PV; SPI = EV/AC
• DCPI = AC/PV; SPI = PV/AC

Estimate at Completion (EAC) using the formula EAC = BAC / CPI assumes:

• APerformance to date is a one-off and won't continue
• BCurrent cost performance (CPI) will continue for the rest of the project
• CThe schedule has no influence on cost
• DManagement reserve will be released

Project status: BAC = $10M, EV = $4M, AC = $5M. EAC assuming current CPI continues is:

• A$10M
• B$11M
• C$12.5M
• D$15M

EAC formula EAC = AC + (BAC - EV) / (CPI x SPI) is most appropriate when:

• AThe schedule has no effect on cost
• BBoth cost AND schedule performance to date are expected to continue, AND schedule pressur…
• COnly cost performance matters
• DProject is just starting

To-Complete Performance Index (TCPI) using BAC as the target is:

• A(BAC - EV) / (BAC - AC)
• BBAC / CPI
• CEV / PV
• DEV / AC

TCPI(EAC) (the efficiency needed to finish at the EAC) is:

• A(BAC - EV) / (EAC - AC)
• B(BAC - EV) / (BAC - AC)
• CEV / AC
• DEAC / BAC

Variance at Completion (VAC) is calculated as:

• ABAC - EAC
• BEAC - BAC
• CEV - AC
• DPV - AC

Per ANSI/EIA-748, the Contract Budget Base (CBB) is:

• AContract Target Cost + Authorized Unpriced Work (AUW)
• BPerformance Measurement Baseline only
• CManagement Reserve only
• DActual Cost to date

Undistributed Budget (UB) is:

• ABudget already assigned to control accounts
• BBudget authorized for work within scope but not yet assigned to a specific control accoun…
• CManagement Reserve
• DActual cost

Management Reserve (MR) is:

• AHeld INSIDE the PMB and accessible to the project manager
• BHeld OUTSIDE the PMB for unknown-unknowns and unplanned in-scope work, controlled by prog…
• CThe same as contingency reserve
• DProfit

An Integrated Baseline Review (IBR) is conducted to:

• AProvide a customer-led, joint review with the contractor of risks, scope, schedule, and b…
• BCancel the contract
• CBid the work
• DPay invoices

The Responsibility Assignment Matrix (RAM) on an EVMS-compliant project maps:

• ARisks to owners
• BControl accounts to the responsible CAM and OBS element
• CTasks to durations
• DVendors to contracts

If at status date PV = $200,000, EV = $180,000, AC = $210,000, what is the Cost Variance (CV) and what does it mean?

• ACV = -$30,000; project is over budget for work performed to date
• BCV = +$30,000; project is under budget
• CCV = -$20,000; project is behind schedule
• DCV = $0; project is on plan

Earned Schedule (ES) - a Lipke extension to traditional EVM - addresses:

• AThe fact that traditional SV in dollars collapses to zero at project end even on late pro…
• BCost overruns
• CResource leveling
• DRisk identification

An EVMS Surveillance Review by the customer examines whether the contractor's system continues to comply with the 32 ANSI/EIA-748 guidelines. Typical frequency is:

• ADaily
• BAnnually or semi-annually
• COnly at project close-out
• DNever

Authorized Unpriced Work (AUW) is:

• AWork authorized to start but for which the price has not been finalized in the contract
• BAlready-priced work
• CCancelled work
• DCompleted work

Independent Estimate at Completion (IEAC) is BEST defined as:

• AThe contractor's own forecast
• BAn EAC produced independently by the customer or PM staff (not by the CAMs) using statist…
• CThe contract value
• DBAC

Per ANSI/EIA-748, the cost accounting system must:

• ARecord direct and indirect costs at the control account level and reconcile with general…
• BOnly record actuals
• CIgnore indirect costs
• DReplace the general ledger

If the indirect cost rate (overhead) is 25% of direct labor, and direct labor for a work package is $100,000, the total indirect-and-direct labor cost is:

• A$100,000
• B$120,000
• C$125,000
• D$150,000

An Over Target Baseline (OTB) is established when:

• AThe PMB is below contract budget
• BThe contractor and customer agree that the original PMB is no longer executable and addit…
• CRisks are eliminated
• DWork is complete

The 32 ANSI/EIA-748 guidelines are organized into five process groups. The process group with the LARGEST number of guidelines is:

• AOrganizing (5 guidelines)
• BPlanning, Scheduling, and Budgeting (10 guidelines)
• CAccounting Considerations (6 guidelines)
• DRevisions and Data Maintenance (5 guidelines)

A work authorization document (WAD) typically:

• AAuthorizes the CAM to perform a specific control account's scope within defined budget, p…
• BAuthorizes contract changes
• CAuthorizes payment
• DAuthorizes hiring

If at status date BAC = $10M, EV = $4M, PV = $4.5M, then SPI is:

• A0.89
• B1.13
• C0.40
• D1.00

Schedule Variance (SV) of -$200,000 means:

• AProject is $200,000 ahead
• BProject is $200,000 behind schedule, valued at budget rates (not in time units)
• CProject is over budget by $200,000
• DProject is on schedule

If a Material Work Package has an EV technique of 'apportioned effort' to an installation work package, and the installation WP has EV = $200,000 against a base BAC of $400,000, while the material WP has BAC = $80,000, the material EV is:

• A$40,000
• B$80,000
• C$160,000
• D$200,000

A Work Authorization Document (WAD) issued without a clear period of performance, scope, or budget violates which ANSI/EIA-748 principle?

• ADecisive integration of scope, schedule, and cost authorization at each level of manageme…
• BRandom allocation of resources
• CRandom material purchasing
• DProfit recognition

The Cost Account Manager (CAM) Notebook typically includes:

• APersonal photos
• BControl account scope, schedule, budget, EV technique, current performance, variance anal…
• CVendor invoices only
• DRisk register

Variance Analysis Reports (VARs) in EVMS are typically triggered by:

• AAny cost change
• BVariances that exceed pre-defined thresholds (e.g., > $50,000 OR > 10% of CV/SV)
• CPersonal preference
• DRandom selection

A Performance Measurement Baseline change due to authorized scope changes (new work added, existing work removed) is called:

• ARe-baselining for performance
• BInternal Replanning
• CExternal Replanning (a customer/contract-directed change)
• DProject closeout

Internal Replanning (a contractor-initiated re-organization of remaining work) is appropriate when:

• APerformance variances suggest the remaining work would be better managed with a different…
• BCustomer adds scope
• CContract is canceled
• DProject finishes

If a project has CPI = 0.95 (consistently for 3 months), the likely root causes to investigate include:

• ALower-than-planned productivity, escalation, rework, overtime, or scope growth not yet re…
• BOnly weather
• COnly contracts
• DOnly management decisions

On the IPMR/IPMDAR (Integrated Program Management Data and Analysis Report), Format 1 contains:

• AWBS-level cost/schedule data including PV, EV, AC, BAC, EAC, current and cumulative varia…
• BOrganizational data only
• CRisk register
• DMaterial POs only

A Schedule with no integration to the cost baseline (separate cost and schedule files):

• AIs fully ANSI/EIA-748 compliant
• BCannot produce reliable EV data, because EV requires time-phased cost (PV) at the work-pa…
• CReduces audit risk
• DSpeeds up updates

The EAC formula EAC = AC + (BAC - EV) is appropriate when:

• ACurrent variance is treated as a one-off and remaining work is expected to proceed at the…
• BCost AND schedule are expected to continue degrading
• CProject is just starting
• DThe contract has been cancelled

A Subcontractor on a major program reports their own EV data. Per ANSI/EIA-748, the prime contractor must:

• AIgnore subcontractor performance
• BFlow down EVMS requirements to qualifying subcontracts and integrate subcontractor data i…
• CPay invoices without analysis
• DCancel the contract

Material is typically earned in EVMS at:

• ATime of vendor PO issuance
• BTime of receipt at the project site (or formal acceptance), not at PO or invoice time, to…
• CTime of invoice receipt
• DTime of payment

Direct labor charged to a control account but performed on a different control account's scope should be:

• AReclassified to the correct control account via a journal entry, maintaining the cross-ch…
• BIgnored
• CDistributed equally across all accounts
• DCharged to overhead

Indirect Cost Rate variance occurs when:

• AActual indirect rates (overhead, G&A) differ from the rates used in the baseline budget,…
• BDirect hours change
• CMaterial prices change
• DSchedule slips

A control account with significant variance triggers a corrective action plan, which should include:

• ARoot cause(s), specific corrective actions with owners and dates, expected impact on EAC…
• BOnly the root cause
• COnly the EAC change
• DOnly an apology