CAPM (Certified Associate in Project Management) Practice Exam

What does Planned Value (PV) represent?

1. The total costs incurred during a project

2. The budget for the work accomplished

3. The budget or the portion of the approved cost estimate planned to be spent during a given period

4. The value earned at the completion of the project

The correct answer is: The budget or the portion of the approved cost estimate planned to be spent during a given period

Planned Value (PV) represents the budget or the portion of the approved cost estimate planned to be spent during a given period. This value signifies the original planned cost of the work to be completed up to a specific point in the project schedule. It is an essential aspect of project management as it helps in measuring the project's progress by comparing it to the actual costs incurred and work completed. Option A is incorrect because Planned Value (PV) does not represent the total costs incurred during a project. It instead focuses on the planned costs. Option B is not the correct answer because Planned Value (PV) does not represent the budget for the work accomplished; it represents the planned cost of the work scheduled to be completed. Option D is also incorrect as Planned Value (PV) does not represent the value earned at the completion of the project; rather, it focuses on the planned cost of the work up to a specific point in the project schedule.