Determining the Earned Value Involves Collecting Data on the Percent

question 90

Multiple Choice

Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the ____ of the work package by the percent complete.

• A) total budgeted cost (TBC)
• B) cumulative budgeted cost (CBC)
• C) cumulative earned value (CEV)
• D) cumulative actual cost (CAC)

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Definitions:

Expected Value Criterion

A decision-making approach based on the weighted average of all possible outcomes, with each outcome's weight being its probability of occurrence.

Variable Cost

Costs that change in proportion to the level of activity or volume of production, such as materials and labor costs.

Setup Cost

The cost to prepare a machine or process for production.