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

Which value represents the cumulative sum of weekly actual costs in a project?

1. Earned Value

2. Planned Value

3. Actual Cost

4. Budgeted Cost

The correct answer is: Actual Cost

The cumulative sum of weekly actual costs in a project is represented by Actual Cost. This value reflects the direct costs that have been incurred for the project at any given point in time. Tracking actual costs is critical for project managers as it enables them to assess financial performance and make adjustments to keep the project within budget. To provide context, Earned Value measures the value of work actually performed up to a certain point and helps in evaluating project progress compared to the planned schedule and costs. Planned Value, on the other hand, is the estimated value of the work that should have been completed by a specific time based on the project schedule. Budgeted Cost refers to the total cost allocated for the project, which includes all projected expenses but does not reflect ongoing expenditures or actual spending to date. Understanding these distinctions helps project managers effectively evaluate performance and manage costs throughout the project lifecycle.