Earned Value Management is a method for managing ---?

Earned Value Management is a method for managing ---?

• A. cost
• B. risk
• C. schedule
• D. quality

Answer: (B)

Earned Value Management focuses on measuring how the project is performing in terms of cost and schedule by combining what was planned with what has been earned and what has actually been spent. It uses planned value (PV), earned value (EV), and actual cost (AC) to compute indicators like cost variance (CV), schedule variance (SV), cost performance index (CPI), and schedule performance index (SPI). These metrics let you see whether you’re on budget and on schedule and to forecast final cost and completion date. Risk management, by contrast, deals with identifying uncertainties and planning mitigations, which is a separate practice from EVM. So, EVM is best understood as a method for managing cost and schedule performance, not risk, with cost being the most directly addressed focus among the given choices.

Earned Value Management focuses on measuring how the project is performing in terms of cost and schedule by combining what was planned with what has been earned and what has actually been spent. It uses planned value (PV), earned value (EV), and actual cost (AC) to compute indicators like cost variance (CV), schedule variance (SV), cost performance index (CPI), and schedule performance index (SPI). These metrics let you see whether you’re on budget and on schedule and to forecast final cost and completion date. Risk management, by contrast, deals with identifying uncertainties and planning mitigations, which is a separate practice from EVM. So, EVM is best understood as a method for managing cost and schedule performance, not risk, with cost being the most directly addressed focus among the given choices.