AACE International Exam CCP Topic 1 Question 17 Discussion

Actual exam question for AACE International's CCP exam

Question #: 17
Topic #: 1

[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?

AProject is ahead of schedule, but over budget

BProject is behind schedule, but over budget

CProject is behind schedule, but under budget

DProject is ahead of schedule, but under budget

Show Suggested 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 Ronald at Jan 25, 2025, 10:35 PM

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Shala

9 days ago

I think the correct answer is C. The project is behind schedule, as the EV is less than the PV, but it's under budget, since the AC is less than the EV. Reminds me of that old saying, 'Better late than never, and cheaper than expected!'

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Werner

11 days ago

So, the answer is B) Project is behind schedule, but over budget.

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Fernanda

13 days ago

Hmm, this is a tough one. I'm leaning towards option D, as the project seems to be ahead of schedule but under budget. The EV is less than the PV, which means it's ahead of schedule, and the AC is less than the EV, so it's under budget. Gotta love these Earned Value questions!

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Precious

25 days ago

I'm going with option B. The project is behind schedule and over budget. The EV is less than the PV, so it's behind schedule, and the AC is greater than the EV, so it's over budget. Simple as that.

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Salina

27 days ago

This is a tricky one. Based on the information given, I would say the project is behind schedule but under budget. The EV is less than the PV, indicating the project is behind schedule, but the AC is less than the EV, suggesting it's under budget. Option C seems like the correct answer to me.

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