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AACE International Exam CCP Topic 5 Question 7 Discussion

Actual exam question for AACE International's CCP exam
Question #: 7
Topic #: 5
[All CCP Questions]

You are reporting the following Earned Value Analysis information for the project:

EV= $1,500,000

AC=$1.000,000

PV= $2,000,000

What is the status of the project?

Show Suggested Answer Hide Answer
Suggested Answer: C

The problem provides key metrics used in Earned Value Management (EVM):

Earned Value (EV): $1,500,000

Actual Cost (AC): $1,000,000

Planned Value (PV): $2,000,000

Key Points:

Schedule Performance Index (SPI):

SPI = EV / PV = $1,500,000 / $2,000,000 = 0.75

An SPI less than 1 indicates the project is behind schedule.

Cost Performance Index (CPI):

CPI = EV / AC = $1,500,000 / $1,000,000 = 1.5

A CPI greater than 1 indicates the project is under budget.

Conclusion: The correct answer is C. Project is behind schedule, but under budget because the SPI indicates a delay in schedule, and the CPI shows that the project is currently spending less than planned.


by Lillian at Sep 09, 2024, 08:55 AM

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Osvaldo
11 months ago
Looks like the project manager is trying to pull a fast one on us. If the EV is less than the PV, that means we're behind schedule. And if the AC is higher than the EV, well, we're over budget. Option B all the way, my dude!
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Ronny
11 months ago
I'm feeling a bit like a budget detective here. Let's see, if the EV is less than the PV, we're behind schedule. And if the AC is higher than the EV, we're over budget. Definitely option B, no doubt about it!
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Solange
10 months ago
Looks like we need to make some adjustments to get back on track.
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Merilyn
10 months ago
Yes, I agree. The project is behind schedule and over budget.
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Peggy
10 months ago
I think option B is the correct one.
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Brigette
11 months ago
Hold up, let me put on my project management glasses. Okay, got it! Since the EV is less than the PV, we're behind schedule. And the AC is higher than the EV, so we're over budget. B is the way to go.
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Benton
10 months ago
B) Project is behind schedule, but over budget
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Rasheeda
11 months ago
AC is higher than EV, so we're over budget.
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Kimi
11 months ago
EV is less than PV, so we're behind schedule.
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Glory
11 months ago
So, the answer is B) Project is behind schedule, but over budget.
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Long
11 months ago
I agree, the PV is higher than EV.
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Venita
11 months ago
Woah, this is a tricky one! If the project's EV is less than the PV, that means we're behind schedule. And if the AC is more than the EV, we're over budget. Gotta be option B, my friend.
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Felicidad
11 months ago
Hmm, let's see. The project's EV is $1,500,000, AC is $1,000,000, and PV is $2,000,000. Looks like we're behind schedule, but over budget. I'd go with option B.
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An
10 months ago
Yes, it looks like the project is behind schedule and over budget. Option B is the best choice.
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Aja
11 months ago
I agree, option B seems to be the most accurate based on the information provided.
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Eliseo
11 months ago
I think the project is behind schedule.
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