Valid PMP Dumps shared by ExamDiscuss.com for Helping Passing PMP Exam! ExamDiscuss.com now offer the newest PMP exam dumps, the ExamDiscuss.com PMP exam questions have been updated and answers have been corrected get the newest ExamDiscuss.com PMP dumps with Test Engine here:
While preparing an earned value analysis (EVA) for the sponsor, the project manager provided this information in the latest project report: Approved Work Package Cost Estimates: US$9,500 Contingency reserves: $500 Management reserves: 10% of contingency reserves Percent complete of the project: 50% Planned percent of the project: 40% Actual costs of the project: US$4,500 What is accurate about the project status?
Correct Answer: B
Step-by-step analysis: 1. Calculate Budget at Completion (BAC) Work package estimates = $9,500 Contingency reserve = $500 BAC = 9,500 + 500 = $10,000 (Management reserve is not included in EVA baseline) 2. Calculate Planned Value (PV) Planned % = 40% PV = 40% × 10,000 = $4,000 3. Calculate Earned Value (EV) Actual % complete = 50% EV = 50% × 10,000 = $5,000 4. Actual Cost (AC) AC = $4,500 Cost Performance: CPI = EV / AC = 5000 / 4500 ≈ 1.11 This means the project is about 11% under budget (≈10% for answer purposes) Schedule insight (for completeness): EV (5000) vs PV (4000) -> ahead of schedule That's 25% more work completed than planned, but the question focuses on cost