Plan and Manage Finance

Earned Value Management is the single highest-yield formula set on the exam. Core terms: Planned Value (PV, budgeted cost of scheduled work), Earned Value (EV, budgeted cost of work actually performed), Actual Cost (AC, real cost incurred).

Core formulas — memorize, don't just recognize: CV = EV − AC (cost variance), SV = EV − PV (schedule variance), CPI = EV / AC (cost performance index — under 1.0 is over budget), SPI = EV / PV (schedule performance index — under 1.0 is behind schedule). Forecasting: EAC (estimate at completion) has multiple formulas depending on whether current variances are typical or atypical of the remainder of the project — the most tested is EAC = BAC / CPI, assuming the current cost performance continues.

Study focus: know when to use each EAC formula, not just one — the exam distinguishes between "future work will be done at the planned rate" and "future work will continue at the current CPI" scenarios.