ITPEC FE Subject A April 2025 Question 41

Source exam: ITPEC FE Subject A April 2025Topic: Project Management

ITPEC FE Subject A April 2025 — Question 41 of 60

Earned Value (EV) is the value of work actually completed, measured in terms of the authorized budget assigned to that work.

Three core EVM metrics:
- PV (Planned Value) — budgeted cost of work scheduled

- EV (Earned Value) — budgeted cost of work performed

- AC (Actual Cost) — actual cost of work performed

Key formulas: CPI = EV / AC, SPI = EV / PV.

Why not others:
- (b) — describes the Budget at Completion (BAC) or cost baseline, not EV

- (c) — describes Planned Value (PV) — the authorized budget for scheduled work

- (d) — describes Actual Cost (AC) — the real money spent on performed work

Key rule: EV answers "how much planned budget has been earned by the work actually done."

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