Answer:
The cumulative earned value for each work package is calculated by multiplying each percent complete by the (B) Cumulative budgeted cost for the work package.
Step-by-step explanation:
The cumulative earned value for each work package is determined by multiplying each percent complete by the Cumulative Budgeted Cost for the respective work package. This process is part of the Earned Value Management (EVM) technique, a project management methodology that integrates cost, schedule, and scope to assess project performance.
The Cumulative Budgeted Cost represents the planned cost for the work performed, and by multiplying it by the percent complete, the earned value for that portion of the work is calculated. This earned value is a critical metric in EVM, providing insights into how well the project is progressing in terms of cost efficiency and schedule adherence.
Understanding and accurately calculating earned value is essential for project managers to assess project health and make informed decisions to keep the project on track. It allows for proactive management of resources and helps in forecasting potential issues before they significantly impact the project's success.
Option B is correct.