Six Sigma Global Institute (SSGI) Project Management Professional Certification Practice Exam

Earned Value in project terms is defined as:

1. The budgeted value of work scheduled

2. The actual money spent on the project

3. The cumulative sum of weekly earned value

4. The planned vs. actual comparison of project costs

The correct answer is: The cumulative sum of weekly earned value

Earned Value in project management is a critical metric used to assess project performance by measuring the work accomplished in terms of the budgeted costs. The correct definition of Earned Value is the value of work that has actually been completed by a specific point in time, based on the budgeted amount for that work. The cumulative sum of weekly earned value reflects the total worth of the work that has been completed up to any point in time during the project. It enables project managers to understand how much of the project's planned value has been earned through actual completion of tasks, offering a clear picture of project performance. This concept is essential in project management as it allows for the assessment of whether a project is on track concerning its schedule and budget. Monitoring the cumulative earned value helps in forecasting future performance and making necessary adjustments. In contrast, the other choices do not accurately capture the essence of Earned Value. The budgeted value of work scheduled refers to planned value rather than the value of completed work. The actual money spent pertains to the actual costs incurred, which is distinct from earned value. The planned versus actual comparison of project costs captures a broader analysis of project financials without specifically indicating the value of work that has been completed.