AACE EVP Earned Value Professional Practice Test

AACE Earned Value Professional (EVP) is the route for practitioners who work with integrated scope, schedule, cost, performance measurement, EVMS reporting, variance analysis, forecasting, and change control.

Start with 24 public sample questions or the free 120-question diagnostic before subscribing. PM Mastery then gives you a stable EVP bank with 583 questions, topic drills, timed mocks, detailed explanations, glossary support, and progress tracking across web and mobile.

AACE EVP exam snapshot

For current eligibility, fees, delivery rules, and policy details, see the official AACE EVP detail page .

• Vendor: AACE International
• Official credential: Earned Value Professional (EVP)
• Route family: earned value management and integrated project controls
• Best fit: practitioners who manage EVMS reporting, variance, forecasting, and scope/schedule/cost integration

EVP-style decisions usually reward the option that keeps performance measurement tied to approved scope, reliable schedule and budget baselines, actual-cost traceability, and explainable forecast logic.

Official EVP exam format notes

How the EVP format changes preparation

What EVP is really testing

• whether you can connect work scope, schedule, budget, actual cost, and performance measurement
• whether you can interpret variance and trend data without losing the control baseline
• whether you can explain earned value reports to stakeholders who need decisions, not just metrics

Route decision checkpoint

How EVP differs from nearby routes

Related PM Mastery pages

• PMP 2026 for broader value, stakeholder, and delivery trade-off practice
• PMP for current integrated planning and monitoring scenarios
• PMI-SP for schedule-control comparison
• PMI-PMOCP for governance, reporting, and performance-measurement practice

How to use live EVP practice efficiently

1. Start with the free 120-question diagnostic to see whether misses cluster in EVMS organizing, scheduling and budgeting, account considerations, analysis reports, or data maintenance.
2. Use topic drills when misses show a pattern: baseline integrity, objective EV rules, actual-cost traceability, CPI/SPI/EAC/VAC reasoning, or variance narratives.
3. Review each missed item by naming the control rule: what was authorized, what was actually earned, what cost evidence is reliable, and what management action follows.
4. Move to timed mixed mocks when you can explain the baseline, variance, forecast, and communication logic without relying on formula recognition alone.

Free preview vs premium

• Free preview: 24 public sample questions on this page and a free 120-question diagnostic so you can inspect the style before subscribing.
• Premium: the full 583-question AACE EVP bank, topic drills, mixed sets, timed mock exams, detailed explanations, and progress tracking across web and mobile.

This is an initial release. We expand high-demand banks first based on learner usage, feedback, and subscriber demand. Subscribers receive access to future additions automatically.

What to open next

• Need the AACE family map? Open AACE .
• Need broader controls depth? Open CCP .
• Need schedule-specialist comparison? Open PSP or PMI-SP .

Need concept review first?

If you want concept-first reading before heavier simulator work, use the companion AACE EVP Study Guide on PMExams.com. Then return here for timed mocks, topic drills, explanations, and the full PM Mastery practice path.

Focused sample questions

Use these child pages when you want focused PM Mastery practice before returning to mixed sets and timed mocks.

• AACE EVP Cheat Sheet
• Free AACE EVP Full-Length Practice Exam
• AACE EVP: Organizing
• AACE EVP: Communication Competency
• AACE EVP: Perform Planning and Scheduling Duties
• AACE EVP: Perform Budgeting Duties
• AACE EVP: Account Considerations
• AACE EVP: Analysis and Management Reports
• AACE EVP: Revisions and Data Maintenance

Sample Exam Questions

Try these 24 public sample questions for AACE EVP. They are drawn from the current PM Mastery practice bank and are not official exam-sponsor questions.

Question 1

Topic: Domain 4: Perform Budgeting Duties

An EVP is reviewing proposed earned value measurement methods before approving a control account into the performance measurement baseline (PMB). Which interpretation is best supported by the planning facts?

• A. All five work elements should be measured as discrete percent complete because each has a budget and can be reported at status dates.
• B. Valve installation should be apportioned effort, and material handling should be units-complete because both occur during field installation.
• C. Valve, design, and panel work are discrete effort using units-complete, milestone weighting, and percent complete; project controls is level of effort; material handling is apportioned effort.
• D. Project controls support should use milestone weighting, and material handling should be level of effort because both are support activities.

Best answer: C

Explanation: Earned value measurement technique should match the nature of the work and the available objective evidence. Identical repeated items with acceptance criteria are well suited to units-complete measurement. A deliverable with predefined completion gates and weights is milestone weighting. A unique physical assembly can be measured as percent complete when the assessment is based on objective progress criteria rather than elapsed time or spending. Ongoing project controls support has no separate physical product proportional to progress, so level of effort is appropriate. Material handling is not an independent deliverable here; its budget is tied to pipe installation and earned as the related discrete work progresses, making it apportioned effort.

The exhibit shows objective discrete products for the first three rows, duration-based support for project controls, and effort that varies directly with another measured activity for material handling.

Question 2

Topic: Domain 5: Account Considerations

At the May status date, a control account includes £800,000 for a prefabricated electrical package. The approved earning rule in the performance measurement baseline allows material earned value only when the package is delivered to site, inspected, and accepted for installation. Accounting has recorded the supplier invoice as actual cost, but the package remains at the vendor facility under a quality hold and has not been delivered or accepted. The control account manager wants to claim earned value to avoid a large cost variance. What is the best professional judgment?

• A. Record the actual cost as reconciled, but do not claim earned value until the delivery, inspection, and acceptance criteria are met.
• B. Claim earned value equal to the invoice amount because the supplier has completed fabrication and billed the project.
• C. Move the material budget to a later period and remove the current actual cost from the control account until installation starts.
• D. Claim partial earned value based on the percentage of the invoice already paid to the supplier.

Best answer: A

Explanation: Material cost timing can create a legitimate difference between actual cost and earned value. An invoice, accrual, commitment, or cash payment does not by itself prove that the project has earned the related budget. If the baseline earning rule requires delivery, inspection, and acceptance, those criteria must be satisfied before earned value is taken. In this case, the package is still at the vendor facility under quality hold, so claiming earned value would overstate physical accomplishment and weaken EVMS data integrity. The actual cost may remain in the accounting record if it is properly recognized and traceable to the control account, but the performance report should show the resulting variance and explain the procurement or quality issue.

Earned value must follow the approved accomplishment criteria, while actual cost recognition is a separate accounting matter.

Question 3

Topic: Domain 5: Account Considerations

At the September status cutoff, a control account has cumulative PV of $2,000,000, EV of $1,800,000, and AC of $1,700,000. The AC includes $1,000,000 of direct labor, overhead applied at the provisional 40% rate, and other actual costs. Accounting has now approved a 50% overhead rate for the same direct labor base, retroactive to the current fiscal year, and will post the adjustment in the current reporting period. The contract and EVMS procedure state that indirect-rate changes affect actual cost, not authorized scope or the performance measurement baseline. What is the best earned-value treatment?

• A. Exclude the $100,000 from AC until the customer reimburses the indirect cost through a cash payment.
• B. Increase EV by $100,000 because the higher approved overhead rate means more value has been earned for the same work.
• C. Increase the control account budget by $100,000 so the cost variance remains favorable after the accounting adjustment.
• D. Increase AC by $100,000, leave PV and EV unchanged, and explain that the cost variance is reduced to zero by the overhead adjustment.

Best answer: D

Explanation: An approved indirect-rate change is an accounting effect on actual cost when it applies to work already performed. Here, the overhead rate increases from 40% to 50% on a $1,000,000 direct labor base, so AC increases by $100,000. EV remains $1,800,000 because physical accomplishment has not changed, and PV remains $2,000,000 because the authorized baseline has not changed. The cost variance moves from $100,000 favorable to zero: \(CV = EV - AC = \$1,800,000 - \$1,800,000\). The professional treatment is to reconcile the accounting adjustment, preserve baseline integrity, and explain the variance impact in the report and forecast.

The rate change adds 10% of $1,000,000 to actual cost, while PV and EV remain tied to the authorized baseline and earned scope.

Question 4

Topic: Domain 1: Organizing

A project team is preparing the EVMS control structure for baseline approval. The project controls lead has these constraints:

• Each control account must have one named control account manager accountable for budget, earned value, actual-cost review, and variance response.
• Actual costs will be collected by the control account code shown in the RAM.
• Variance narratives are required when cumulative cost or schedule variance exceeds 10%.

RAM excerpt:

• WBS 1.2, Test System: assigned jointly to the Systems Engineering manager and Test manager; one control account code; no budget split.
• WBS 1.3, Training: assigned to the Training lead; detailed work packages for the next 90 days and planning packages beyond that.
• WBS 1.4, Deployment: assigned to the Field Operations manager; installation crews named later in work authorizations.
• WBS 1.5, Project Management: assigned to the PMO manager; measured as level of effort.

Which RAM weakness should be corrected before approving the baseline?

• A. WBS 1.3 includes planning packages beyond the near-term detailed planning window.
• B. WBS 1.5 uses level-of-effort measurement for project management work.
• C. WBS 1.4 does not name individual installation crew members in the RAM.
• D. WBS 1.2 has joint control-account accountability without a single responsible manager or budget split.

Best answer: D

Explanation: A responsibility assignment matrix links the WBS scope to the OBS responsibility structure and establishes control-account accountability. For reliable baseline control, each control account must have a clear accountable manager who owns the authorized budget, the earned-value method, actual-cost review, and variance response. Joint assignment of one control account to two managers without a defined budget or scope split creates ambiguity: progress could be claimed by one group, costs collected under one code, and variance explanations disputed between functions. Planning packages, unnamed future crew members, and level-of-effort work can be acceptable when they are properly authorized and controlled. The decisive weakness is the lack of single-point accountability for WBS 1.2.

A control account needs clear single-point accountability so earned value, actual costs, and variance response can be traced to an accountable manager.

Question 5

Topic: Domain 6: Analysis and Management Reports

A contractor is preparing the monthly earned value contract submittal for the June 30 status date. The contract data requirement calls for cumulative PV, EV, AC, CPI/SPI, threshold variance analysis, EAC/VAC, and approved baseline changes by WBS. The project team also has an internal recovery brainstorm, informal comments from a customer hallway discussion, and a draft narrative blaming the customer for delay, but no approved change or documented direction supports that claim. What is the best professional action for the submittal?

• A. Submit the required earned value data, approved change information, and evidence-based variance analysis; keep the brainstorm and unsupported informal narrative out of the contract submittal.
• B. Attach the internal recovery brainstorm so the customer can see all management thinking before the plan is approved.
• C. Report the customer delay as an approved baseline change and update the EAC to show the recovery target.
• D. Replace the variance analysis with the informal customer discussion because it explains the likely delay cause more clearly.

Best answer: A

Explanation: Contract earned value submittals must satisfy the reporting requirement using controlled, traceable information: status data, approved baseline and change records, objective variance analysis, and current forecast information. Internal working papers can support management review, but they should not be treated as contract submittal content unless the contract requires them or they have been approved for release. Informal conversations may identify an issue to investigate, but they do not substitute for documented direction, approved change control, or evidence-based variance causes. In this situation, the professional action is to submit the required EV information and keep unsupported blame, hallway comments, and draft recovery brainstorming out of the formal customer report.

The contract submittal should contain required, traceable, supportable information and exclude internal working analysis or unsupported narrative.

Question 6

Topic: Domain 6: Analysis and Management Reports

At the month 8 status date, a control account manager is preparing the forecast for a management report.

• BAC: USD 2,000,000
• EV: USD 900,000
• AC: USD 1,125,000
• CPI: 0.80
• SPI: 0.90
• Constraints: the performance measurement baseline is unchanged, no scope change has been approved, and the program forecasting procedure says to use cumulative CPI unless a documented recovery plan justifies another method.

What is the best professional judgment for the report?

• A. Report EAC of USD 2,000,000 because the baseline is unchanged and no scope change has been approved.
• B. Report ETC of USD 875,000 because the remaining budget equals BAC minus AC.
• C. Report EAC of USD 2,347,000 by blending CPI and SPI because both cost and schedule performance are unfavorable.
• D. Report EAC of USD 2,500,000, ETC of USD 1,375,000, and VAC of USD -500,000; note that meeting BAC would require a remaining-work CPI of about 1.26.

Best answer: D

Explanation: The forecast should preserve baseline integrity while showing the expected cost outcome from current performance. With no approved scope change and no documented recovery plan, the stated procedure requires a cumulative CPI-based forecast. Remaining budgeted work is BAC − EV = USD 1,100,000. Dividing that by CPI 0.80 gives an ETC of USD 1,375,000. Adding current AC of USD 1,125,000 gives an EAC of USD 2,500,000. Therefore, VAC = BAC − EAC = USD -500,000. The TCPI to finish at BAC is (BAC − EV) / (BAC − AC) = 1,100,000 / 875,000, or about 1.26, which is a major improvement over the current CPI of 0.80 and should be highlighted as a forecast credibility concern.

Using cumulative CPI, EAC = AC + (BAC − EV) / CPI, and the TCPI to meet BAC is (BAC − EV) / (BAC − AC).

Question 7

Topic: Domain 6: Analysis and Management Reports

At the July 31 status date, a controls analyst is reviewing a control-account progress report before running variance analysis and updating the estimate at completion. The report has these constraints:

• The performance measurement baseline is current through all approved changes; one scope increase is still pending customer approval.
• A work package using a 0/100 milestone technique is reported as 70% earned based on the control account manager’s judgment, but the required completion test has not been signed.
• Actual cost includes posted labor and supplier invoices through July 26 only; material received on July 29 has no accrual recorded.
• Management wants CPI, SPI, variance explanations, and a forecast update the next morning.

What is the best professional judgment?

• A. Use the reported 70% earned value and posted actual cost, then add a note that the forecast may change after accounting closes.
• B. Add the pending scope increase to the baseline now so CPI, SPI, and EAC reflect the work management expects to perform.
• C. Treat the report as not ready for reliable analysis until earned value follows the milestone rule, actual cost is reconciled to the status date, and the pending change is kept outside the baseline.
• D. Report SPI only and defer all cost variance and EAC analysis because actual costs are incomplete.

Best answer: C

Explanation: A progress report supports downstream variance analysis only when PV, EV, and AC are aligned to the same status date, tied to authorized baseline scope, and based on the approved measurement method. Here, the 0/100 work package has not met its completion criterion, so reporting 70% EV would overstate performance. Actual cost is also incomplete because the accounting cutoff stops before the status date and received material has not been accrued. The pending customer change cannot be added to the performance measurement baseline until approved. Running CPI, SPI, variance explanations, or an EAC update from these inputs would produce misleading management information. The professional action is to correct or qualify the source data before using it for performance analysis and forecast updates.

Reliable variance analysis and forecasting require objective earned value, status-date actual cost traceability, and an authorized baseline.

Question 8

Topic: Domain 6: Analysis and Management Reports

A prime contractor is preparing the March subcontract performance input for a customer EVMS report. The subcontract is a fixed-price design package within one control account.

Which action best supports the March EVMS report?

• A. Report EV of $150,000, coordinate accounting treatment for the unsupported invoice, and require objective status plus a recovery forecast for the late IFC milestone.
• B. Report EV and AC of $400,000 because the subcontractor’s invoice and 80% complete statement show current progress.
• C. Report planned EV of $350,000 and defer variance reporting until the IFC drawings are either accepted or formally rejected.
• D. Move the IFC milestone budget into April and treat the $400,000 invoice as a commitment so the March report matches the subcontractor forecast.

Best answer: A

Explanation: Subcontract performance must be integrated using the authorized measurement method and objective evidence, not unsupported status claims or invoice amounts. The milestone method earns value only when the defined milestone is accepted. As of March 31, only the preliminary design milestone has been accepted, so EV is 30% of $500,000, or $150,000. The IFC milestone is late and not accepted, so it should not earn value. The invoice cannot be treated as earned progress, and the accounting note requires accepted milestone support or an approved accrual package before cost booking. The appropriate management action is to report the supported EV, reconcile or hold unsupported cost treatment through accounting, and obtain objective status and a recovery forecast for the late subcontract deliverable.

Only the accepted 30% milestone supports earned value, while the unsupported invoice and late deliverable require reconciliation and subcontract management action.

Question 9

Topic: Domain 1: Organizing

A project controls lead is reviewing a draft work authorization before releasing work into the EVMS control structure. Based on the excerpt, what is the best professional judgment?

• A. Hold the release until baseline schedule dates or milestone references and accountable manager acceptance are added.
• B. Release the work and let the mechanical department assign accountability during the first status cycle.
• C. Add management reserve to the budget field before release so the control account has full funding visibility.
• D. Release the work because the authorized scope, WBS, control account, and budget are identified.

Best answer: A

Explanation: A work authorization should provide enough information to control authorized scope, budget, schedule, and responsibility at the appropriate control-account level. The excerpt adequately identifies the deliverable scope, exclusions, WBS/control account, and budget by cost element. However, the schedule wording is not baseline-control quality because it uses relative phrases rather than approved start/finish dates or specific baseline milestones. The responsibility field is also incomplete because a functional department is not the same as accepted accountability by the control account manager or other named responsible party. Releasing the work as-is would weaken traceability for earned value, schedule status, and accountability. The appropriate action is to correct the authorization before release, not to let accountability or schedule boundaries be inferred later.

The authorization has usable scope and budget detail, but it lacks control-ready schedule boundaries and accepted accountability by the responsible manager.

Question 10

Topic: Domain 6: Analysis and Management Reports

At the 30 June status date, a control account has these cumulative values:

Additional facts:

• AC includes a $45,000 risk mitigation activity that was authorized in the control account plan, budgeted in the PMB for June, and completed as planned.
• The CAM attributes the physical progress shortfall to lower-than-planned weld productivity.
• No scope change, baseline change, or management reserve transfer has been approved.
• The remaining-work forecast is $30,000 higher than the remaining baseline budget because the weld productivity trend is expected to continue.

Use CV = EV - AC and EAC = AC + ETC. Which management-report statement best interprets the mitigation-related information?

• A. Report the forecast increase as a baseline change; increase BAC to the new EAC so the variance at completion is zero.
• B. Report the mitigation as an executed risk response; report CV as -$60,000, and show the $30,000 remaining-work increase as a forecast adjustment with no baseline or reserve change.
• C. Report the mitigation as the variance explanation; remove $45,000 from AC and report the adjusted CV as -$15,000.
• D. Report the mitigation as a management reserve transfer; increase the control account budget by $45,000 to offset the AC impact.

Best answer: B

Explanation: A planned mitigation activity is a risk response action, not automatically a variance explanation, baseline change, reserve transfer, or forecast adjustment. Here, the $45,000 mitigation was already authorized, budgeted in the PMB, and completed as planned, so it should remain in AC and be described as executed mitigation. The current cost variance is EV - AC = $810,000 - $870,000 = -$60,000. The stated cause of the performance shortfall is lower weld productivity. The forecast effect is separate: the remaining work is expected to cost $30,000 more than the remaining baseline budget, so that belongs in EAC/ETC analysis. Because no baseline change or management reserve transfer has been approved, the report should not revise BAC or move reserve to improve the variance picture.

The mitigation was authorized and completed as planned, while the unfavorable cost variance and higher EAC are driven by performance and forecast data, not by an approved baseline or reserve action.

Question 11

Topic: Domain 4: Perform Budgeting Duties

At the September status review, a project controls manager proposes changing next month’s baseline report based on the following snapshot. The program procedure states that an over-target baseline or over-target schedule may be implemented only after formal customer approval, and prior-period performance history must be retained unless that approval specifically authorizes a reset.

Which interpretation should be used for the management report?

• A. Move $18.0M into undistributed budget because the EAC exceeds the contract budget base.
• B. Release the $6.0M management reserve to eliminate the need for an over-target baseline.
• C. Report a potential OTB/OTS condition, continue measuring against the approved baseline, and state that implementation awaits formal customer approval.
• D. Reset cumulative variances to zero because the forecast exceeds the contract budget base and baseline finish date.

Best answer: C

Explanation: An over-target baseline or over-target schedule is a controlled baseline action, not an automatic result of an unfavorable forecast. The data support a serious condition: EAC of $118.0M exceeds the $100.0M contract budget base, and the forecast finish is four months beyond the approved baseline finish. However, the exhibit also states that the customer has only requested an impact assessment and has not approved the OTB/OTS. Until approval is issued, management reporting should continue to use the approved performance measurement baseline and disclose the forecast condition, variance position, schedule slip, and approval status. Undistributed budget, management reserve, and variance resets cannot be used simply to absorb poor performance or make reports look current.

The exhibit shows a forecast overrun and finish slip, but the OTB/OTS has not been approved for baseline implementation.

Question 12

Topic: Domain 4: Perform Budgeting Duties

As of 30 June, a project team is implementing a formally approved over-target baseline. The customer approval states that there is no new scope and no change to contract target cost or funding. Use \( \text{OTB amount} = \text{revised PMB} - \text{CBB} \).

Which interpretation is correct for the baseline control record?

• A. Record a $24 million OTB because the PMB rises from $94 million to $118 million; treat the full increase as added authorized scope.
• B. Keep the PMB capped at $100 million because an EVMS baseline may not exceed the CBB; hold the extra $18 million as undistributed budget.
• C. Record an approved $18 million OTB because the revised PMB exceeds the CBB; disclose it as a performance measurement baseline condition, not added scope or funding.
• D. Do not record an OTB because $6 million of management reserve was available before the replan, so the baseline remains within the original CBB.

Best answer: C

Explanation: An over-target baseline exists when the approved performance measurement baseline is greater than the contract budget base. Here, the revised PMB is $118 million and the CBB is $100 million, so the OTB amount is $18 million. The PMB increase from $94 million to $118 million is $24 million, but $6 million of that increase comes from management reserve already inside the CBB. Because the approval explicitly says there is no new scope and no funding change, the over-target amount is a baseline control and performance measurement condition, not contract growth. The baseline record should preserve traceability, identify the approved OTB, and avoid classifying the excess as undistributed budget or new work.

The over-target amount is $118 million minus $100 million, and the approval does not create new contractual scope or funding.

Question 13

Topic: Domain 3: Perform Planning and Scheduling Duties

A project team is preparing for an integrated baseline review of a newly approved control account. The customer has asked what evidence should be emphasized to show the account is ready for execution. The account manager has 30 minutes in the review, the baseline has been approved but not yet reported against, and one work package still has a pending supplier quote that must not be treated as authorized budget. Which evidence best demonstrates control-account readiness, baseline realism, and management understanding?

• A. A budget spreadsheet showing that planned value totals equal the control account budget at completion, with the pending supplier quote included as the latest estimate.
• B. A summary slide stating that no variances exist because performance reporting has not yet started.
• C. A control-account package that ties authorized WBS scope to IMS activities, time-phased budget, objective completion criteria, resource assumptions, risks, and the account manager’s explanation of how performance will be controlled.
• D. A signed responsibility assignment matrix and organization chart showing that the account manager has been assigned to the control account.

Best answer: C

Explanation: For an integrated baseline review, readiness is demonstrated by evidence that the control account is executable and understandable, not merely assigned or mathematically balanced. Strong evidence should trace authorized scope through the WBS into the integrated master schedule, show realistic time-phased budget and resources, define objective earned value measurement criteria, and identify assumptions and risks the account manager understands. Because the supplier quote is pending, it may inform risk or estimate discussion but should not be treated as authorized baseline budget. The best evidence also shows that the account manager can explain how progress, variances, and corrective actions will be managed once performance reporting begins.

This evidence connects scope, schedule, budget, measurement, risk, and accountable management understanding without relying on unauthorized supplier data.

Question 14

Topic: Domain 7: Revisions and Data Maintenance

A control account manager asks the project controls lead to process a baseline change before the monthly customer report is issued. The manager says the work can still be recovered later in the year.

Which professional judgment is best supported by the exhibit?

• A. The requested baseline change should not be approved because it would erase unfavorable performance history without an approved scope, schedule, or accounting basis.
• B. The requested baseline change should be approved if the total control account budget remains unchanged after moving the budget to future periods.
• C. The requested baseline change should be approved because the manager expects future recovery and the current baseline is no longer achievable.
• D. The requested baseline change should be processed as an accounting reconciliation because actual cost is higher than earned value.

Best answer: A

Explanation: Baseline revisions must preserve the integrity of performance history. A baseline change is appropriate when there is an approved scope or schedule change, authorized internal replanning within the rules, or a documented correction to erroneous baseline or accounting data. Here, the exhibit shows no approved change request and no accounting correction. The control account is behind plan and over cost: EV is less than PV, and AC is greater than EV. Moving current-period budget into future periods and restating June history would reduce or remove the visible variance rather than correct the cause. The proper action is to keep the historical PV, EV, and AC intact, report the variance, document cause and impact, update the forecast as needed, and manage corrective action through normal controls.

The exhibit shows real unfavorable performance and no approved change or correction, so retroactively moving budget would improperly hide variance.

Question 15

Topic: Domain 5: Account Considerations

At the July status date, the project controls analyst is reconciling actual costs from the accounting system to the earned value report. The EVMS procedure requires actual costs to be traceable to authorized work and reported by control account.

Which action is best supported by the exhibit?

• A. Allocate the generic charges between the two control accounts in proportion to each control account’s earned value.
• B. Use the GL account to assign costs because labor and material categories are sufficient for EVMS reporting.
• C. Assign all ENG-100 charges to the engineering department manager because both control accounts are in the same department.
• D. Establish a unique accounting charge code or cost collection link mapped to each authorized control account before loading actual costs to the EV report.

Best answer: D

Explanation: Actual cost traceability depends on a reliable link from accounting transactions to the authorized work being measured. In an EVMS environment, the key link is not just the project number, GL account, department, or vendor; it must identify the cost collection point that maps to the applicable control account, work package, or authorized charge number. Here, the same generic charge string can feed two different control accounts, so the reported actual cost cannot be matched with the earned value for each account. The correct action is to establish or enforce a unique accounting charge code or equivalent cost collection structure tied to authorized control accounts. That preserves reconciliation, variance analysis, and report credibility.

A control-account-level accounting link is needed so actual costs can be traced from transactions to authorized work and matched to earned value reporting.

Question 16

Topic: Domain 6: Analysis and Management Reports

At the month-end data date, a control account manager must integrate a reimbursable subcontract into the customer earned-value report. The subcontract budget at completion is $1,000,000. The approved measurement method earns $100,000 only when each deliverable is accepted by the buyer. Four of ten deliverables are accepted, two have been submitted but rejected for rework, and four have not been submitted. Accounts payable has paid and recorded $800,000 of approved subcontract invoices as actual cost. The subcontractor’s current, supportable forecast to complete all work is $1,150,000, and no baseline change has been approved. What is the best professional reporting action?

• A. Report $400,000 earned value, $800,000 actual cost, keep BAC at $1,000,000, and use the $1,150,000 forecast in the EAC analysis with a clear variance explanation.
• B. Report $600,000 earned value for the accepted and submitted deliverables, and defer the forecast increase until the rework is accepted.
• C. Report $800,000 earned value because 80% of the subcontract value has been paid, and hold EAC at $1,000,000 until all deliverables are due.
• D. Limit actual cost and EAC to $1,000,000 because no baseline change has been approved, and describe the payment status separately.

Best answer: A

Explanation: Subcontract payment status is not evidence of physical progress or earned value. In this case, the approved earning rule is acceptance-based, so only the four accepted deliverables earn budget: $400,000. The $800,000 paid and recorded by accounts payable is actual cost, not progress. The two rejected deliverables do not earn value until they meet the acceptance criteria. Because no baseline change is approved, the BAC remains $1,000,000; however, forecast data is not the same as baseline budget. A supportable subcontractor forecast of $1,150,000 should be reflected in EAC analysis and explained as a forecast overrun or performance issue.

Accepted deliverables drive earned value, paid invoices drive actual cost, the approved BAC remains the baseline, and the supportable forecast informs EAC.

Question 17

Topic: Domain 5: Account Considerations

At the June 30 status date, the draft earned value report for control account CA-142 shows AC = $360,000. The project accountant provides the following cumulative cost extract for the same control account area.

EVMS rule for this project: actual cost reported for a control account must be incurred or accrued cost that is traceable through an approved accounting charge code to authorized work in that control account. Pending changes and suspense charges are not included until authorized and mapped.

Which reconciliation statement best supports the earned value report?

• A. Use $355,000 as traceable AC and require the accounting charge code-to-control account link before including the suspense or pending-change costs.
• B. Use $405,000 as AC because all listed costs relate to the same WBS area and have been incurred or identified by accounting.
• C. Use $340,000 as AC because accruals should be excluded until the supplier invoice is paid in cash.
• D. Keep the reported $360,000 AC because it is between the mapped accounting cost and the total accounting extract.

Best answer: A

Explanation: Actual cost in an EVMS report must be traceable to the same authorized work scope used for earned value. Here, the accounting link is the approved charge code mapping to the control account and authorized work. The traceable amount is $340,000 of direct cost plus the $15,000 accrual for received material, or $355,000. The $30,000 suspense amount may relate to the same WBS, but it lacks the control-account mapping needed for reliable reporting. The $20,000 pending-change cost is not yet authorized baseline work. Reporting either of those amounts as CA-142 actual cost would weaken reconciliation between accounting records, work authorization, and earned value reports.

Only the $340,000 mapped cost and $15,000 mapped accrual are traceable to authorized CA-142 work under the stated EVMS rule.

Question 18

Topic: Domain 1: Organizing

A control account manager submits the month-end earned value update for a test facility project. The project rule is that earned value may be recorded only for work packages released by a signed work authorization tied to approved scope and budget.

Which work authorization control should be applied?

• A. Move unused budget from WBS 1.4.2 to the thermal shield and claim EV in the current period.
• B. Accept the $24,000 EV because the shop has objective physical progress.
• C. Record the EV under WBS 1.4.2 because the temporary charge code links the work to an authorized control account.
• D. Withhold EV until the thermal shield is approved, budgeted, assigned to the proper control account, and released by signed work authorization.

Best answer: D

Explanation: Work authorization protects the integrity of the performance measurement baseline by ensuring that only approved scope is released for execution and performance measurement. Physical progress alone is not enough to earn value if the work is outside the authorized baseline. In this case, the thermal shield was requested informally and the change request has not been approved. A temporary charge code and unused budget in a related work package do not create authorized scope. The appropriate control is to stop earned value credit until change control approves the work, assigns it to the correct WBS/control account structure, budgets it, and releases it through formal work authorization.

Earned value should be measured only after the work is within authorized scope, budget, responsibility, and work release controls.

Question 19

Topic: Domain 3: Perform Planning and Scheduling Duties

A control account has a $600,000 work package for a pump skid. The approved earned value rule is 40% for released design, 40% for installed skid, and 20% for passing the specified flow test. At the status date, design is released and the skid is installed, but the flow test failed and engineering estimates rework will be required. The specification has not been changed, and no baseline change has been approved. What is the best professional action?

• A. Earn 100% of the work package because the physical equipment is installed and the remaining work is corrective maintenance.
• B. Earn 100% of the work package and open a risk for the possible future cost of passing the flow test.
• C. Earn 80% of the work package, report the failed flow test as a technical performance issue, and update the ETC/EAC for expected rework.
• D. Revise the baseline milestone weights so the failed flow test is moved to a future work package.

Best answer: C

Explanation: Earned value should be based on the approved objective accomplishment criteria, not on informal optimism or elapsed physical installation alone. In this case, the design and installation criteria have been met, so 80% of the work package can be earned. The failed flow test is a current technical performance shortfall, not merely a future uncertainty, so it should be visible in management reporting and linked to corrective action. Because rework is now expected, the ETC and EAC should reflect the cost and schedule impact. The performance measurement baseline should not be revised unless an authorized change supports the revision; changing milestone weights to avoid showing the shortfall would damage baseline integrity.

Only the objective completion criteria achieved should earn value, while the known technical shortfall should affect reporting, corrective action, and the forecast.

Question 20

Topic: Domain 4: Perform Budgeting Duties

At the 30 June status date, control account CA-230 has no approved scope change and no accounting correction in process. The control account manager wants to replace the unstarted July-December planning package with detailed work packages. Work planned through June will remain in the existing work packages.

Current records:

• Authorized BAC in the PMB: USD 1,200,000
• Cumulative PV through 30 June: USD 700,000
• Cumulative EV through 30 June: USD 560,000
• Cumulative AC recorded in the accounting ledger: USD 640,000
• Current EAC in the forecast log: USD 1,420,000

Assume the future baseline budget affected by this planning change is calculated as authorized BAC minus cumulative PV through the status date. Which planning change best protects EVMS traceability across baseline, actual-cost, and forecast records?

• A. Increase BAC to USD 1,420,000 and budget the July-December work at USD 780,000 so the baseline matches the current EAC.
• B. Move USD 80,000 of recorded actual cost into the new July-December work packages so AC aligns more closely with EV.
• C. Reduce the 30 June PV to USD 560,000 and move USD 140,000 into July-December work packages so schedule variance is removed.
• D. Retain the 30 June PV, EV, AC, BAC, and EAC records; detail the July-December work with USD 500,000 of future baseline budget.

Best answer: D

Explanation: A planning change that details future work should not rewrite historical performance or accounting records when there is no approved scope change or accounting correction. The authorized BAC remains USD 1,200,000, and the cumulative PV, EV, and AC through 30 June remain traceable to the status record. The future baseline budget affected by the planning change is USD 1,200,000 - USD 700,000 = USD 500,000. The EAC is a forecast record, not a new budget authorization. Preserving these distinctions keeps the PMB, earned progress, actual costs, and forecast mutually traceable while allowing legitimate future planning detail.

This preserves historical performance and actual-cost traceability while replanning only the authorized future baseline budget: USD 1,200,000 minus USD 700,000.

Question 21

Topic: Domain 5: Account Considerations

A control account includes a procurement-heavy work package for installing prefabricated skid assemblies. The month-end status package contains the following excerpt:

Which interpretation should the EVP analyst use for month-end earned-value reporting?

• A. Report EV of $350,000 because 70 skids have been received and accepted by receiving inspection; report AC of $406,000 for accrued cost.
• B. Report EV of $540,000 because the full lot is under purchase order; report AC of $562,000 because the supplier commitment is contractually binding.
• C. Report EV of $250,000 for installed and accepted skids; report AC of $250,000 because only paid cash should be included in actual cost.
• D. Report EV of $250,000 for installed and accepted skids; report AC of $406,000 for the accrued receipt and lot charge; treat the remaining purchase order value as a commitment or forecast exposure.

Best answer: D

Explanation: For earned-value reporting, procurement events must be classified by what they represent. A purchase order creates a commitment, but it does not by itself create earned progress or actual cost. Material receipt may support accrual accounting, but it is not earned progress unless the work package’s measurement rule says receipt earns value. Here, skid budget is earned only when skids are installed and accepted, so EV is 50 × $5,000 = $250,000. The full lot freight/test budget is not earned because the full lot has not been received and accepted. Actual cost should follow the accounting status: 70 received skids at $5,200 plus $42,000 lot freight/test equals $406,000 accrued AC. Cash paid is not the same as actual cost when accruals are used.

This separates earned progress from receipt, actual cost from cash payment, and commitment from incurred cost.

Question 22

Topic: Domain 6: Analysis and Management Reports

At the May data date, a fabrication control account shows cumulative PV of $2.4 million, EV of $2.0 million, and AC of $2.5 million. The variance analysis identifies excessive welding rejects as the main cause. A new fixture and added inspector training were completed in the final week of May. Since then, only 1 of the next 6 planned weld lots has passed first inspection, and no baseline change has been approved. The control account manager wants to lower the EAC from $3.4 million to $3.0 million and state that the issue is fixed.

What is the best professional recommendation for the management report?

• A. Lower the EAC to $3.0 million because the root-cause mitigation has been completed before the next reporting cycle.
• B. Omit the mitigation discussion until all 6 future weld lots are complete, because one inspected lot is not statistically conclusive.
• C. Revise the welding baseline budget to remove the reject impact because the corrective action has addressed the problem.
• D. Report the mitigation as corrective action, keep the past variance visible, and adjust the forecast only if supported by post-mitigation performance evidence.

Best answer: D

Explanation: Risk mitigation or corrective action can explain why performance may improve, but completion of the action does not by itself prove that future productivity or quality has changed. The past cost and schedule variance should remain visible because the rejects already occurred and affected EV and AC. The report should identify the mitigation, explain the limited evidence available after implementation, and avoid an unsupported EAC improvement. If subsequent lots show a sustained lower reject rate, the forecast can then be revised using objective post-mitigation performance data. AACE EVP analysis should protect variance traceability and forecast credibility rather than treating a corrective action plan as demonstrated recovery.

This separates the cause of past variance from evidence needed to support improved future performance and forecast credibility.

Question 23

Topic: Domain 3: Perform Planning and Scheduling Duties

A control account manager is presenting the proposed schedule baseline for a qualification work package. The project controls procedure says risk mitigation may be in the performance measurement baseline only when it is an approved risk response with WBS/control account budget, objective accomplishment criteria, and schedule logic; schedule reserve must be separately identified and approved.

Which interpretation is best supported by the exhibit?

• A. The mitigation should remain only in the risk register until the test-chamber risk occurs and becomes an issue.
• B. The approved response activities are valid baseline mitigation, but the eight-day lag is hidden schedule margin that should be formally approved and identified or removed.
• C. The eight-day lag should be kept in the baseline and earned as progress once the test is complete.
• D. The entire baseline treatment is acceptable because all inserted time protects the customer demo from an identified risk.

Best answer: B

Explanation: Risk mitigation can be incorporated into an earned value baseline when it represents authorized work or approved schedule reserve that is visible, traceable, budgeted, and logically connected to the plan. In the exhibit, the alternate chamber reservation and pre-test checkout satisfy those conditions: they are tied to an approved response, control account, budget, and schedule logic. The eight-day lag does not. It has no WBS or control-account identity, no budget, no risk reference, and no approval record. Leaving it in the baseline as informal protection would obscure float, weaken schedule credibility, and make variance and forecast analysis less transparent. The proper professional judgment is to preserve the authorized mitigation while either obtaining formal approval and identification for the schedule reserve or removing the hidden margin.

The response activities are traceable and authorized, while the unlabeled lag lacks the required control-account, budget, risk, and approval basis.

Question 24

Topic: Domain 4: Perform Budgeting Duties

A control account in the approved performance measurement baseline has the following time-phased budget. The status date for the monthly earned value report is April 30. Use planned value (PV) as the cumulative baseline budget for work scheduled to be performed through the status date.

At April 30, earned value is USD 100,000 and actual cost is USD 125,000. Which reporting statement correctly interprets planned value for the control account?

• A. PV is USD 115,000; it represents the approved budget for work scheduled through April 30, not the work actually earned or spent.
• B. PV is USD 150,000; it represents the total approved control account budget including May.
• C. PV is USD 125,000; it represents the accounting cost recorded for the work by April 30.
• D. PV is USD 100,000; it represents the value of the work physically accomplished by April 30.

Best answer: A

Explanation: Planned value is taken from the approved, time-phased performance measurement baseline. For a status date of April 30, the correct cumulative PV includes January through April only: USD 20,000 + USD 30,000 + USD 25,000 + USD 40,000 = USD 115,000. PV does not change because the team earned a different amount of work or incurred a different actual cost. Earned value reflects accomplished work measured against its budget, while actual cost reflects recorded cost. The May budget remains part of the control account BAC, but it is not planned value at the April status date because it is scheduled after the reporting cutoff.

The cumulative baseline budget through April is USD 20,000 + USD 30,000 + USD 25,000 + USD 40,000 = USD 115,000.

EVP performance-measurement map

Use this flow when a question asks whether earned value data supports a reliable control decision. EVP scenarios usually reward baseline integrity, objective progress measurement, and clear forecast interpretation.

    flowchart LR
	  A["Authorized work scope"] --> B["Performance measurement baseline"]
	  B --> C["Planned value profile"]
	  C --> D["Objective earned value"]
	  D --> E["Actual cost and variance"]
	  E --> F["Index and forecast interpretation"]
	  F --> G["Corrective action and report"]

Quick Cheat Sheet

Mini Glossary

• Control account: Management point where scope, schedule, budget, cost, and responsibility align.
• Work package: Lowest planned work element used for detailed control.
• Variance analysis: Explanation of cause, impact, trend, forecast effect, and action.
• Baseline maintenance: Keeping baseline and status data accurate after approved changes or completed work.
• Corrective action: Managed response intended to improve future performance.

Open AACE EVP in PM Mastery

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EVP Quick Reference

In this section

• AACE EVP: Organizing
  Try 10 focused AACE Earned Value Professional (EVP) questions on Organizing, with answers and explanations, then continue with PM Mastery.
• AACE EVP: Communication Competency
  Try 10 focused AACE Earned Value Professional (EVP) questions on Communication Competency, with answers and explanations, then continue with PM Mastery.
• AACE EVP: Perform Planning and Scheduling Duties
  Try 10 focused AACE Earned Value Professional (EVP) questions on planning and scheduling duties, with answers and explanations, then continue with PM Mastery.
• AACE EVP: Perform Budgeting Duties
  Try 10 focused AACE Earned Value Professional (EVP) questions on budgeting duties, with answers and explanations, then continue with PM Mastery.
• AACE EVP: Account Considerations
  Try 10 focused AACE Earned Value Professional (EVP) questions on account considerations, with answers and explanations, then continue with PM Mastery.
• AACE EVP: Analysis and Management Reports
  Try 10 focused AACE Earned Value Professional (EVP) questions on analysis and management reports, with answers and explanations, then continue with PM Mastery.
• AACE EVP: Revisions and Data Maintenance
  Try 10 focused AACE Earned Value Professional (EVP) questions on revisions and data maintenance, with answers and explanations, then continue with PM Mastery.
• Free AACE EVP Full-Length Practice Exam: 120 Questions
  Try 120 free AACE Earned Value Professional (EVP) practice questions across the exam domains, with answers and explanations, then continue in PM Mastery.
• AACE Earned Value Professional (EVP) Cheat Sheet
  Review a compact AACE Earned Value Professional (EVP) cheat sheet for EVMS baselines, earned value, actual cost, variance analysis, forecasts, data maintenance, and PM Mastery practice.