Question

Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the _________________ of the work package by the percent complete.

A) Budgeted cost
B) Duration
C) Total cumulative fees
D) Contract cumulating amount

Answer 1

Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the budgeted cost of the work package by the percent complete.

Step-by-step explanation:

The correct answer is A) Budgeted cost.

In earned value management, determining the earned value involves collecting data on the percent complete for each work package. This percentage is then multiplied by the budgeted cost of the work package to convert it to a dollar amount.

For example, if a work package has a budgeted cost of $10,000 and it is 50% complete, the earned value would be $5,000 (50% * $10,000).