Skip to content
Sign in
Artwork for Business Exam Prep
Business Exam Prep · Friday · 4 min

CAPM Exam Prep 43, EVM Variances and Indices — CV, SV, CPI, SPI

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How to calculate Cost Variance (CV) using the formula EV minus AC to determine if a project is over or under budget. - The formula for Schedule Variance (SV), which is EV minus PV, and how to use it to see if a project is ahead of or behind schedule. - How to calculate the efficiency ratios CPI (EV divided by AC) and SPI (EV divided by PV). - How to interpret the results: for variances, negative is bad, and for indices, a value less than 1.0 is bad. - A simple mnemonic to remember the formulas: Earned Value (EV) always comes first in variance calculations. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

0:00-4:24
Play in

transcript

No transcript — this publisher did not publish one.

show notes

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:
- How to calculate Cost Variance (CV) using the formula EV minus AC to determine if a project is over or under budget.
- The formula for Schedule Variance (SV), which is EV minus PV, and how to use it to see if a project is ahead of or behind schedule.
- How to calculate the efficiency ratios CPI (EV divided by AC) and SPI (EV divided by PV).
- How to interpret the results: for variances, negative is bad, and for indices, a value less than 1.0 is bad.
- A simple mnemonic to remember the formulas: Earned Value (EV) always comes first in variance calculations.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

more episodes

All episodes