can the planned value be considered as acutal cost ?

Earned Value Management

Tony L None

Hello,

During a mock exam I had the question below, and I do not understand the answer :

According to the data below what are the good metrics (SPI = 0.98 ; CPI = 1.05; CPI = 1.30 ; SPI = 1.01 ; CPI = 0.95) ?
stories planned = 77
stories completed = 78
planned value = 2950K
earned value = 3090K

Answers :
SPI = 1.01 (easy one)
CPI = 1.05 (earned value 3090 / planned value 2950) is that is the point because the original formula is CPI = EV / AC. Here, in the answer the actual cost (AC) is considered as planned value. Why ? Is it correct ?

Posted: Oct 15, 2025 3:41 PM

Sort By:

Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada

Tony -

This looks like a poorly written question. There can be real world situations where AC = EV such as a contract where each work package has a fixed cost. There are also real world situations where AC = PV if there is a fixed cost per elapsed time period regardless of the work which actually gets completed (e.g. $5K per elapsed week). However, in this case, context hasn't been provided to point to either of these scenarios.

Kiron

...

1 reply by Tony L

Oct 16, 2025 2:39 PM

Tony L

...

ok noted, thank you for your reply Kiron

Posted: Oct 15, 2025 5:23 PM

Tony L None

Oct 15, 2025 5:23 PM

Replying to Kiron Bondale

...

ok noted, thank you for your reply Kiron

Posted: Oct 16, 2025 2:39 PM

Please login or join to reply

can the planned value be considered as acutal cost ?

Sponsors

Vendor Events

Guessing is not a strategy: How to build decision velocity with AI and real-time data

Newsletters