CAPM (Certified Associate in Project Management) Practice Exam

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Prepare for the CAPM Exam with challenging questions and comprehensive explanations. Utilize flashcards and multiple choice quizzes to enhance your project management knowledge. Ace your exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What does planned value represent?

Total project budget
Sum of approved cost estimates scheduled to be performed
Cost incurred to date
Future project costs

The correct answer is: Sum of approved cost estimates scheduled to be performed

Planned Value (PV) represents the sum of approved cost estimates scheduled to be performed up to a specific point in time. It is a key component of the Earned Value Management (EVM) technique, which helps in measuring project performance and progress against the baseline plan. PV helps in determining how much work was planned to be completed by a certain time and forms the basis for comparison with actual work completed (Earned Value) and the cost of work completed (Actual Cost). In contrast: - Option A, Total project budget, is incorrect because Planned Value does not represent the total project budget. It specifically refers to the cost of work scheduled to be completed. - Option C, Cost incurred to date, is incorrect because Planned Value does not reflect the costs already incurred; it focuses on the approved cost estimates for the work scheduled. - Option D, Future project costs, is incorrect because Planned Value is about the work scheduled to be completed and does not pertain to future project costs.