Variance analysis MCQs – Software Project Management(schedule variance, cost variance)
1. What does Schedule Variance (SV) measure?
A) The difference between the earned value and the planned value
B) The cost incurred for the work performed
C) The difference between actual cost and earned value
D) The ratio of earned value to actual cost
Answer: A) The difference between the earned value and the planned value
2. How is Schedule Variance (SV) calculated?
A) EV – PV
B) PV – EV
C) EV – AC
D) AC – EV
Answer: A) EV – PV
3. What does a positive Schedule Variance (SV) indicate?
A) The project is behind schedule
B) The project is on schedule
C) The project is ahead of schedule
D) The project is over budget
Answer: C) The project is ahead of schedule
4. How is Cost Variance (CV) calculated?
A) EV – PV
B) EV – AC
C) PV – EV
D) AC – EV
Answer: B) EV – AC
5. What does a negative Cost Variance (CV) indicate?
A) The project is over budget
B) The project is under budget
C) The project is on budget
D) The project is ahead of schedule
Answer: A) The project is over budget
6. Which formula represents the Cost Performance Index (CPI)?
A) EV / AC
B) EV – AC
C) AC / EV
D) EV / PV
Answer: A) EV / AC
7. What does a CPI value of less than 1.0 indicate?
A) The project is under budget
B) The project is over budget
C) The project is on schedule
D) The project is ahead of schedule
Answer: B) The project is over budget
8. Which formula represents the Schedule Performance Index (SPI)?
A) EV / PV
B) EV – PV
C) AC / EV
D) PV / EV
Answer: A) EV / PV
9. What does an SPI value greater than 1.0 indicate?
A) The project is behind schedule
B) The project is on schedule
C) The project is ahead of schedule
D) The project is over budget
Answer: C) The project is ahead of schedule
10. Which of the following metrics is used to track schedule efficiency?
A) Cost Performance Index (CPI)
B) Earned Value (EV)
C) Schedule Performance Index (SPI)
D) Planned Value (PV)
Answer: C) Schedule Performance Index (SPI)
11. What does a negative Schedule Variance (SV) indicate?
A) The project is ahead of schedule
B) The project is on schedule
C) The project is behind schedule
D) The project is over budget
Answer: C) The project is behind schedule
12. What is the primary purpose of performing variance analysis in project management?
A) To identify and explain deviations from the project plan
B) To define project requirements
C) To allocate project resources
D) To create a project charter
Answer: A) To identify and explain deviations from the project plan
13. Which of the following is NOT a component of Earned Value Management (EVM)?
A) Earned Value (EV)
B) Cost Variance (CV)
C) Schedule Variance (SV)
D) Risk Register
Answer: D) Risk Register
14. What does Cost Variance (CV) measure?
A) The difference between the earned value and the actual cost
B) The difference between the planned value and the earned value
C) The cost incurred for the work performed
D) The ratio of earned value to planned value
Answer: A) The difference between the earned value and the actual cost
15. Which of the following metrics is used to track cost efficiency?
A) Cost Performance Index (CPI)
B) Schedule Performance Index (SPI)
C) Earned Value (EV)
D) Planned Value (PV)
Answer: A) Cost Performance Index (CPI)
16. What is the meaning of a CPI value equal to 1.0?
A) The project is under budget
B) The project is over budget
C) The project is on budget
D) The project is behind schedule
Answer: C) The project is on budget
17. How does variance analysis help in project management?
A) By providing insights into cost and schedule performance
B) By defining project scope
C) By allocating project resources
D) By developing a project charter
Answer: A) By providing insights into cost and schedule performance
18. Which document provides a detailed account of variance analysis results?
A) Performance Report
B) Risk Register
C) Change Log
D) Issue Log
Answer: A) Performance Report
19. What does a positive Cost Variance (CV) indicate?
A) The project is over budget
B) The project is on budget
C) The project is under budget
D) The project is behind schedule
Answer: C) The project is under budget
20. What is the primary purpose of calculating Schedule Variance (SV)?
A) To assess how well the project is adhering to its schedule
B) To measure the project’s cost efficiency
C) To track actual project costs
D) To develop a detailed project schedule
Answer: A) To assess how well the project is adhering to its schedule
21. How is Cost Performance Index (CPI) used in variance analysis?
A) To measure cost efficiency and predict future cost performance
B) To track schedule performance
C) To define project requirements
D) To allocate project resources
Answer: A) To measure cost efficiency and predict future cost performance
22. What is the role of Earned Value (EV) in variance analysis?
A) To measure the value of work performed compared to the planned value
B) To calculate the cost of actual work performed
C) To track project budget and schedule
D) To define project scope
Answer: A) To measure the value of work performed compared to the planned value
23. Which metric is used to compare actual performance with the planned performance in terms of schedule?
A) Schedule Performance Index (SPI)
B) Cost Performance Index (CPI)
C) Earned Value (EV)
D) Planned Value (PV)
Answer: A) Schedule Performance Index (SPI)
24. What does a CPI value greater than 1.0 indicate?
A) The project is over budget
B) The project is under budget
C) The project is on budget
D) The project is ahead of schedule
Answer: B) The project is under budget
25. How does Schedule Performance Index (SPI) help in project management?
A) By evaluating schedule efficiency and forecasting future performance
B) By tracking cost efficiency
C) By allocating project resources
D) By defining project scope
Answer: A) By evaluating schedule efficiency and forecasting future performance
26. What does a positive Schedule Variance (SV) tell you about a project?
A) The project is behind schedule
B) The project is on schedule
C) The project is ahead of schedule
D) The project is over budget
Answer: C) The project is ahead of schedule
27. Which of the following is true for a Cost Variance (CV) of zero?
A) The project is exactly on budget
B) The project is over budget
C) The project is under budget
D) The project is ahead of schedule
Answer: A) The project is exactly on budget
28. What does a negative Schedule Performance Index (SPI) value indicate?
A) The project is behind schedule
B) The project is on schedule
C) The project is ahead of schedule
D) The project is over budget
Answer: A) The project is behind schedule
29. Which metric provides an indication of cost overrun?
A) Cost Variance (CV)
B) Schedule Variance (SV)
C) Schedule Performance Index (SPI)
D) Planned Value (PV)
Answer: A) Cost Variance (CV)
30. How is Schedule Performance Index (SPI) used in variance analysis?
A) To assess how well the project is sticking to its schedule
B) To measure cost efficiency
C) To calculate actual project costs
D) To define project scope
Answer: A) To assess how well the project is sticking to its schedule
31. Which of the following metrics is calculated as EV / PV?
A) Schedule Performance Index (SPI)
B) Cost Performance Index (CPI)
C) Earned Value (EV)
D) Actual Cost (AC)
Answer: A) Schedule Performance Index (SPI)
32. What does a Cost Performance Index (CPI) value of 0.8 suggest?
A) The project is under budget
B) The project is over budget
C) The project is on budget
D) The project is ahead of schedule
Answer: B) The project is over budget
33. In variance analysis, which value is used to measure the actual performance against the planned performance?
A) Earned Value (EV)
B) Actual Cost (AC)
C) Planned Value (PV)
D) Cost Variance (CV)
Answer: D) Cost Variance (CV)
34. What does Schedule Variance (SV) of $0 indicate?
A) The project is exactly on schedule
B) The project is behind schedule
C) The project is ahead of schedule
D) The project is over budget
Answer: A) The project is exactly on schedule
35. How is the Cost Performance Index (CPI) helpful to project managers?
A) It helps in predicting future project cost performance
B) It helps in calculating project risks
C) It helps in defining project goals
D) It helps in calculating project schedule performance
Answer: A) It helps in predicting future project cost performance