PMI Exam PMI-SP Topic 1 Question 36 Discussion

The planned value is the percentage of where the project should be times the budget at

completion. In this instance, it is 45 percent of the

$950,000. Here, it can be calculated as follows:

PV = 45% of BAC

= 0.45 * 950,000

= 427,500

Planned value (PV) is the authorized budget assigned to the schedule work to be accomplished for a

schedule activity or work breakdown

structure component. It serves as a baseline against which actual performance is measured. The

theory of planned value is of vital importance

to the project management team and it is important to keep careful track of this. The term planned

value can also be in some situations

referred to by the project management team and the project management team leader as the

budgeted cost of work scheduled (BCWS).

Answer option A is incorrect. -$47,500 is the schedule variance (SV = EV-PV).

Answer option B is incorrect. This is the schedule performance index (SPI = EV/PV).

Answer option D is incorrect. This is the cost performance index (CPI = EV/AC).