AACE EVP: Communication Competency

Use this focused AACE EVP page to drill Communication Competency decisions before returning to mixed practice, timed mocks, and the full PM Mastery question bank.

Topic snapshot

Sample questions

These questions are original PM Mastery practice items aligned to this topic area. They are designed for self-assessment and are not official exam questions.

Question 1

Topic: Communication Competency

A customer project manager asks for a short monthly status message before deciding whether to escalate a control account at the joint program review. Which communication is most appropriate given the exhibit?

Control account: 2.4 Avionics test
Status date: 30 June
Amounts are in $000

Reporting trigger: narrative required if CV or SV exceeds 10% and 200,
or if VAC is worse than -500.
Baseline rule: baseline relief requires approved contractual change.

BAC: 5,000   PV: 3,000   EV: 2,400   AC: 3,100   EAC: 5,900
Cause note: environmental test failure caused rework already in progress.
Change note: engineering change request for 450 is submitted but not approved.

• A. Focus the message on detailed accounting transactions so the customer can independently reconcile AC before discussing performance or forecast impact.
• B. State that escalation is unnecessary because the engineering change request will probably offset most of the unfavorable forecast once approved.
• C. Report a material cost and schedule variance, explain the test-failure rework, show the unfavorable VAC, and request review of recovery actions while noting that the pending change is not baseline relief.
• D. Recommend retroactively increasing the baseline by 450 so the report reflects the expected contractual change and avoids overstating the variance.

Best answer: C

What this tests: Communication Competency

Explanation: Professional earned-value communication should match the audience and decision need. The customer project manager needs a concise escalation-ready message, not a ledger or an optimistic narrative. The control account has CV = EV - AC = -700 and SV = EV - PV = -600, both exceeding the stated materiality trigger. The VAC is BAC - EAC = -900, also worse than the trigger. The failed environmental test is an occurred issue causing rework, so it should be reported as the cause with recovery actions. The submitted engineering change request may later affect scope or budget, but it is not approved and cannot be used as baseline relief. The appropriate communication is factual, decision-oriented, and transparent about current performance, forecast impact, and change status.

The data exceed the reporting triggers, affect the forecast materially, and require clear distinction between current performance and an unapproved change.

Question 2

Topic: Communication Competency

A project controls lead is reviewing draft sentences for a memo to the customer steering committee. Based on the status exhibit, which sentence is the LEAST appropriate to include?

• A. CR-17 explains the unfavorable performance, so the memo should report the control account as acceptable and note that rebaselining will resolve the variances.
• B. The memo should separate the pending scope change from current performance because no approved baseline change has been recorded this period.
• C. The memo should cite CPI 0.84 and SPI 0.80 in plain language as unfavorable cost and schedule performance caused by rework from the late test environment.
• D. The control account is outside variance thresholds; the memo should state the cost and schedule impacts and request management action on the recovery plan.

Best answer: A

What this tests: Communication Competency

Explanation: Professional earned-value communication must be concise, evidence-backed, and consistent with the approved baseline and status data. The exhibit shows unfavorable cost and schedule performance: CPI 0.84 and SPI 0.80 are outside the ±10% threshold, and the control account has lower earned value than planned value while actual cost exceeds earned value. The documented cause is late test environment availability causing rework. CR-17 is only pending and no approved baseline change occurred during the period, so it cannot be used to excuse, remove, or rebaseline away the reported variance. A suitable memo statement should distinguish current performance from pending scope, explain the impact in plain language, and support a management decision on recovery or change control.

CR-17 is pending and not in the baseline, so using it to dismiss current unfavorable performance is unsupported and inconsistent with the EVMS facts.

Question 3

Topic: Communication Competency

A project controls manager must write a one-paragraph executive summary for the steering committee. The audience wants the status, forecast implication, and recommended decision. Which summary point is best supported by the status snapshot?

• Forecast without recovery: EAC USD 10.9M; key turnover milestone slips 3 weeks.

• Add second installation crew: EAC USD 11.1M; milestone slip reduced to 1 week; approval needed by July 5.

• Defer closeout documentation: EAC USD 10.9M; no milestone recovery; increases turnover risk.

• Pending customer change: not approved; excluded from the baseline and forecast.

• A. The project should be reported as on budget once the pending customer change is included, and the recovery decision can wait until the change is approved.

• B. The recommended action should be to defer closeout documentation because it preserves the lower EAC and avoids a budget overrun escalation.

• C. The summary should focus only on the three-week schedule slip because the second crew resolves the milestone issue and cost performance is secondary.

• D. The project is behind schedule and over cost, the forecast exceeds executive thresholds, and approval is needed by July 5 to add the second crew despite a forecast VAC of USD -1.1M.

Best answer: D

What this tests: Communication Competency

Explanation: A strong executive-summary point for earned-value communication should be concise, evidence-backed, and decision-oriented. The status data show unfavorable schedule and cost performance: EV is below PV and AC is above EV. The forecast also matters because the recovery alternative that improves the milestone outcome raises EAC to USD 11.1M against a BAC of USD 10.0M, creating a VAC of USD -1.1M. That exceeds the stated executive threshold and requires transparent escalation. The pending customer change cannot be used to soften the message because it is not approved and is excluded from both the baseline and forecast. The best summary therefore states the current performance problem, forecast consequence, residual cost impact, and the specific approval needed by the decision date.

This summary combines the earned-value status, forecast impact, threshold breach, and the supported corrective-action decision without treating unapproved change as available budget.

Question 4

Topic: Communication Competency

At the March status date, the project controls lead is preparing a brief earned-value memo for the customer. Three constraints apply:

• The field team has objective completion evidence for the installation work and EV can be calculated.
• The subcontractor has not submitted final March actual costs, so the accounting system contains an accrual estimate.
• A scope change that could add budget is under review but has not been approved.

Which response best preserves reporting credibility while explaining uncertainty and next steps?

• A. Delay the memo until the subcontractor submits final March costs so no uncertainty appears in the customer report.
• B. Include the pending change in the March baseline because approval is expected and it will reduce the apparent variance.
• C. Report the measured EV and accrued AC, clearly label the actual-cost estimate, exclude the pending change from the baseline, and state when reconciliation and forecast updates will be provided.
• D. Report only the favorable physical progress and omit actual-cost and forecast discussion until the accounting data is final.

Best answer: C

What this tests: Communication Competency

Explanation: Credible earned-value communication should distinguish verified performance data from estimates, assumptions, and unapproved changes. In this situation, objective progress evidence supports reporting EV, but actual cost is not final and must be identified as an accrual estimate. The pending scope change should not be added to the performance measurement baseline until it is approved through change control. A professional memo should therefore state what is known, what remains uncertain, the likely effect on the forecast if material, and the next steps for reconciliation and update timing. This protects management decision quality without hiding uncertainty or prematurely changing the baseline.

This response uses the available objective evidence while transparently identifying the cost uncertainty, authorization status, and follow-up actions.

Question 5

Topic: Communication Competency

An EVP is reviewing a brief status memo for a program sponsor who is not an EVMS specialist and must decide whether to authorize recovery funding next week.

• Status date: May 31
• Cumulative PV: 4.8M; EV: 4.0M; AC: 4.6M
• Variances exceed the reporting threshold; the documented driver is a late design release
• A 350k change request is pending approval, and accounting is checking a possible 120k missing accrual

Which draft statement is LEAST suitable for the sponsor memo?

• A. For the sponsor, summarize CPI and SPI in plain language and identify the decision needed after change and accounting impacts are confirmed.
• B. At May 31, the project is behind plan and over cost because EV is below PV and AC is above EV; the late design release is the documented driver.
• C. Performance should recover once the pending change is added, so the sponsor can assume the cost and schedule variances are temporary.
• D. The memo should separate approved performance results from the pending change request and the unresolved accrual review.

Best answer: C

What this tests: Communication Competency

Explanation: Professional EVMS communication should be factual, evidence-backed, audience-appropriate, and clear about what is known versus unresolved. The supplied data support a simple message: EV is less than PV, indicating schedule performance weakness, and AC is greater than EV, indicating cost performance weakness. The documented driver is the late design release. However, the pending change request and possible missing accrual are not yet approved or reconciled, so they should not be used to dismiss the variance or promise recovery. A sponsor memo should clarify the decision need without burying the message in technical detail or overstating certainty.

This statement is unsupported and inconsistent with the facts because the change is not approved and the accounting impact is still unresolved.

Question 6

Topic: Communication Competency

A control account manager is preparing a short paragraph for a customer status memo after the month 6 close. Which communication is best supported by the status package?

• Schedule note: Two integration test milestones planned for month 6 were not completed.

• Cost note: Overtime was used to correct design defects; no approved scope change exists.

• Procurement note: The supplier delivered all month 6 items on time.

• Forecast note: The EAC assumes CPI improves after recovery actions that are not yet approved.

• A. The supplier delivery problem caused the month 6 underrun in earned value, so the memo should request customer action against the supplier before revising the forecast.

• B. The control account is within acceptable limits because the EAC is only $250,000 over BAC, so the memo should avoid escalation until the recovery plan has been implemented.

• C. The control account is both behind schedule and over cost; the memo should report the unfavorable variances, note that the EAC depends on unapproved recovery actions, and request a management decision on recovery approval and forecast risk.

• D. The variances are temporary because overtime has started, so the memo should state that the control account will return to plan next period if the customer does not change the scope.

Best answer: C

What this tests: Communication Competency

Explanation: Professional earned-value communication should state what the evidence supports and identify assumptions that affect decisions. Here, EV is less than PV, so the account has an unfavorable schedule variance; EV is also less than AC, so it has an unfavorable cost variance. Both variances exceed the stated 10% reporting threshold. The notes support a schedule issue from missed integration milestones and a cost issue from overtime to correct design defects. They do not support blaming the supplier, because the supplier delivered month 6 items on time. The EAC is useful, but it is conditional because it assumes future CPI improvement after recovery actions that have not yet been approved. A good memo should therefore be factual, identify uncertainty, and request the decision needed to manage recovery and forecast credibility.

This communication uses the PV, EV, AC, EAC, milestone, and forecast notes without blaming an unsupported party or treating the recovery assumption as certain.

Question 7

Topic: Communication Competency

At the June 30 status date, a control account shows PV of $2.4 million, EV of $2.0 million, and AC of $2.3 million. The variance reporting threshold is 10%. The project manager needs a short steering committee memo within 48 hours.

Constraints:

• A scope change request for additional interface testing is pending, but not approved.
• Accounting has identified a $150,000 subcontractor invoice received after cutoff that has not yet been accrued.
• The root-cause review is not complete, but schedule logs show late supplier drawings affected successor work.

Which communication is most appropriate?

• A. Avoid reporting the variance until the invoice accrual and root-cause review are complete, and tell the steering committee that no decision is needed yet.
• B. Report unfavorable cost and schedule performance, cite the EV data and threshold breach, disclose the pending accrual and unapproved change, and recommend a time-bound recovery and forecast review before any baseline revision.
• C. Present the account as recoverable because the pending change request will add budget, and recommend revising the baseline now to remove the variance from the report.
• D. State that the supplier caused the overrun, request immediate commercial action against the supplier, and defer discussion of accounting issues until the next reporting cycle.

Best answer: B

What this tests: Communication Competency

Explanation: Professional earned value communication should be evidence-backed, transparent about uncertainty, and clear about the decision needed. The control account has unfavorable performance: EV is below PV and AC is above EV, and the variances exceed the stated 10% threshold. The memo should not hide the variance, blame a party before the root-cause review is complete, or treat a pending change as approved budget. It should also disclose the data-quality issue caused by the unaccrued invoice because AC and the forecast may change. The best communication gives management a reliable status, identifies assumptions and limitations, and recommends a near-term recovery and forecast review while preserving baseline discipline.

This communication uses the available earned value evidence, states data limitations and authorization status, and recommends a supportable management action.

Question 8

Topic: Communication Competency

A project controls lead is drafting a stakeholder message for the sponsor. Which message best uses the exhibit to distinguish factual status, variance cause, assumption, risk exposure, forecast implication, recommendation, and requested decision?

• Variance analysis: Late engineering release caused resequencing and a two-week delay.

• Forecast assumption: Supplier overtime of $40,000 is approved by 5 May and restores planned May productivity.

• Risk exposure: Integration test has not occurred; failed test could create rework.

• Sponsor decision needed: Approve overtime recovery plan or accept a longer schedule slip.

• A. Report that the project can recover by May because the supplier expects overtime to restore productivity, and avoid discussing the integration test until rework is confirmed.

• B. Report that CR-17 caused the current cost and schedule variance, include its estimated cost in the EAC, and ask the sponsor to approve the baseline change to remove the unfavorable variance.

• C. Report that the control account is behind plan and over cost, cite late engineering release as the variance cause, state the overtime-based EAC assumption, identify integration-test rework as a risk, recommend the recovery plan, and ask the sponsor to decide on overtime approval.

• D. Report only that EV is below PV and AC is above EV, and ask the sponsor to wait for the next accounting close before deciding on the recovery plan.

Best answer: C

What this tests: Communication Competency

Explanation: A professional earned-value stakeholder message should not blend facts, assumptions, risks, and decisions into one vague status statement. The exhibit supports factual status: EV is below PV and AC is above EV, so the control account is both behind planned value and over earned cost. The stated variance cause is the late engineering release and resequencing, not the pending CR-17. The EAC depends on an explicit assumption: overtime is approved by 5 May and restores productivity. The integration test is a future uncertainty, so it is a risk exposure rather than a confirmed issue. The sponsor needs a decision on whether to approve the overtime recovery plan or accept more schedule slip.

This message separates the observed performance data, known cause, forecast assumption, future risk, recommendation, and required sponsor decision.

Question 9

Topic: Communication Competency

At the May status date, an earned value lead must provide the first executive-summary point for the sponsor board. The board wants a concise decision-oriented summary, not a calculation walk-through.

• Current approved BAC: $20.0M
• Cumulative PV: $10.0M; EV: $8.5M; AC: $9.8M
• Current EAC: $23.0M
• Variance threshold: cost or schedule variance greater than 10% requires a corrective-action recommendation
• Main cause: late supplier design packages and inefficient overtime used for recovery
• A $1.2M scope change is pending but not approved and is not in the baseline

Which executive-summary point is best?

• A. The project has earned $8.5M of work, so the main message should be that progress is continuing while the team works to improve supplier performance next period.
• B. The summary should focus on the supplier delay only and defer any forecast or funding recommendation until the pending $1.2M change is approved.
• C. The project is materially behind plan and over cost, with a $23.0M EAC against the $20.0M BAC; keep the pending change out of the baseline, act on supplier recovery and overtime controls, and decide how to address the forecast overrun.
• D. The baseline should be revised immediately to $23.0M so the executive report reflects the current EAC and avoids overstating the cost variance.

Best answer: C

What this tests: Communication Competency

Explanation: A strong executive summary for earned value reporting connects performance evidence to a management decision. Here, EV is below PV and AC is above EV, so both schedule and cost performance are unfavorable. The EAC of $23.0M also indicates a forecast overrun against the $20.0M BAC. Because the pending scope change is not approved, it should not be used to revise the performance measurement baseline or soften the variance message. The summary should be concise, factual, and action-oriented: identify the material condition, note the forecast consequence, preserve baseline discipline, and recommend a corrective-action focus tied to the stated causes.

This summary states the performance condition, forecast impact, baseline constraint, corrective-action focus, and decision need concisely.

Question 10

Topic: Communication Competency

A project controls manager is preparing a short memo for tomorrow’s customer management review. The following constraints apply:

• The contract requires written notice to the contracting officer for any variance at completion worse than $500,000 or any forecast delay to a contractual milestone.
• The audience is the customer program manager, contracting officer, and contractor sponsor; they need to decide whether to authorize a recovery plan and whether a pending scope direction must enter formal change control.
• The approved baseline has not been changed. The current report shows VAC = -$720,000 and the contractual test milestone forecast 15 working days late.
• A $90,000 subcontract accrual is estimated in the EAC but has not yet posted to the accounting system.

What is the best professional communication approach?

• A. Tell the customer the adverse variance should be removed from the report because the pending scope direction is expected to become an approved change.
• B. Escalate only to the contractor sponsor and recommend using management reserve so the customer review can focus on recovery confidence rather than variance details.
• C. Send a detailed network-logic packet to the control account managers and wait until the accrual posts before notifying the customer.
• D. Send a concise evidence-based memo that separates authorized-work performance from the pending scope direction, states the material VAC and milestone impact, discloses the accrual assumption, and requests the needed recovery and change-control decisions.

Best answer: D

What this tests: Communication Competency

Explanation: Effective earned-value communication must be tailored to the decision maker and the required action. Here, the issue is material under the contract because both the VAC threshold and the contractual milestone impact have been exceeded. The audience includes the contracting officer, so the memo should support formal notice and clarify whether pending scope direction requires change control. Because the baseline is unchanged, the communication should not treat the pending direction as approved or remove unfavorable performance from the report. The unposted accrual is also important: it should be disclosed as an assumption in the EAC rather than hidden or used to delay required notice. The best memo is concise, factual, traceable to EVMS data, and decision-oriented.

This approach fits the audience, contract notice requirement, materiality, baseline status, data-quality limit, and decision need.

Continue with full practice

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Related focused pages

• Free AACE EVP Full-Length Practice Exam
• AACE EVP: Organizing
• 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

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