# PMP Training Kit: Cost Management

• 7/15/2013

## Exercises

The answers for these exercises are located in the “Answers” section at the end of this chapter.

1. (A) You are the project manager on a project to build 10 identical offices. You expect to spend \$50,000 per office to complete the work and take 20 months to finish. You are 12 months into the work and have completed five offices and spent \$310,000 in total. Use this information to calculate the following:

1. Budget at completion (BAC)

2. Actual cost (AC)

3. Planned value (PV)

4. Earned value (EV)

5. Cost variance (CV)

6. Cost performance index (CPI)

7. Schedule variance (SV)

8. Schedule performance index (SPI)

9. Estimate at completion (EAC)

10. Estimate to complete (ETC)

11. Variance at completion (VAC)

12. To-complete performance index (TCPI)

(B) Based on the information gained from the calculations you have performed, how is the project performing in terms of both cost and time?

2. (A) You are the project manager on a project to complete 15 miles of road. Your approved budget for the project is \$930,000, and you have forecast that the project will take 35 weeks to complete. You are 13 weeks into the project, and have constructed 7 miles of road at a cost of \$58,000 per mile. Use this information to calculate the following:

1. Budget at completion (BAC)

2. Actual cost (AC)

3. Planned value (PV)

4. Earned value (EV)

5. Cost variance (CV)

6. Cost performance index (CPI)

7. Schedule variance (SV)

8. Schedule performance index (SPI)

9. Estimate at completion (EAC)

10. Estimate to complete (ETC)

11. Variance at completion (VAC)

12. To-complete performance index (TCPI)

(B) Based on the information gained from the calculations you have performed, how is the project performing in terms of both cost and time?

## Related resources

PMP Rapid Review

Software Project Survival Guide