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Planned Value

5 minutes 5 Questions

Planned Value (PV), also known as Budgeted Cost of Work Scheduled (BCWS), represents the estimated value of the scheduled work at any given point in time during the project. It is used as a performance baseline for determining how well a project is progressing in terms of cost, time, and scope. Com…

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PMP - Planned Value Example Questions

Test your knowledge of Planned Value

Question 1

You are managing a project with a budget of $500,000 to be completed in 5 months. You are currently in the first month. What is the Planned Value (PV)?

Correct Answer: $100,000

The Planned Value (PV) is the estimated budget for the work scheduled at any given point in time. Since the project is planned to be completed in 5 months with a total budget of $500,000, the budget for each month would be $500,000 divided by 5. Therefore, the Planned Value at the end of the first month would be $100,000. The other answers are wrong because they either underestimate or overestimate the correct calculation of the Planned Value for the first month of the project.

Question 2

A project has a total budget of $500,000 and is scheduled for 12 months. After 6 months, the project manager calculates the Planned Value (PV). What is the PV?

Correct Answer: $250,000

The Planned Value (PV) of a project is the estimated cost that should have been spent according to the schedule. Since the project in question has a 12-month timeline with a budget of $500,000, it can be inferred that the project spends an equal amount of budget per month. Given that the project manager is calculating the PV after 6 months, it equates to half of the total duration. Therefore, the PV should be half of the total budget, that is, $250,000. The other figures such as $500,000, $150,000, and $350,000 are incorrect as these values do not reflect the proportionate budget allocation in accordance with the elapsed project time.

Question 3

A project with a 12-month schedule has a total budget of $240,000. By the sixth month, you only completed half of the activities with a total cost of $100,000. What is the Planned Value (PV)?

Correct Answer: $120,000

The Planned Value (PV) is the estimated cost for the activities that were supposed to be completed by a certain time. In this case, by the sixth month of a 12-month schedule, half of the project tasks were planned to be completed. Thus, half of the total budget would have been planned for these tasks. Given that the total budget is $240,000, half of this would be $120,000. Therefore, the PV after six months would be $120,000. The other answers are incorrect because they do not reflect the calculated PV. $100,000 is the cost actually incurred by the project by the sixth month, but this is not necessarily equal to the PV. $140,000 and $160,000 do not reflect any clear calculation with respect to the data provided in the question.

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