Complete the following exercises

Cost Management Exercises

Exercise 1 -

Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion.

PV = $22,000

EV = $20,000

AC = $25,000

BAC = $120,000

What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?

How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?

Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?

Use the SPI to estimate how long it will take to finish this project.

Sketch the earned value chart for this project, using Figure 7-6 on page 309 as a guide.

Exercise 2 -

Assume that you have completed three months of the project. The BAC was $120,000 for this six-month project. You can also make the following assumptions:

PV = $60,000

EV = $55,000

AC = $50,000

What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?

How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?

Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?

Use the SPI to estimate how long it will take to finish this project.