Earned Value Management (EVM) informs Mega Goal progress by measuring what?

• A. Planned Value, Earned Value, Actual Cost
• B. Measures only time
• C. Measures stakeholder satisfaction
• D. Measures defect rate

Answer: (A)

Earned Value Management informs Mega Goal progress by using three measurements: Planned Value, Earned Value, and Actual Cost. Planned Value is the budgeted value of work that should be completed by a point in time; Earned Value is the budgeted value of work actually completed; Actual Cost is the money actually spent to do the work. By comparing Earned Value to Planned Value you determine schedule performance (are we on track?), and by comparing Earned Value to Actual Cost you assess cost performance (are we within budget?). These comparisons yield indicators like schedule variance and cost performance index and help forecast whether the Mega Goal will be reached on time and within budget. This approach ties together scope, schedule, and cost rather than measuring time alone, stakeholder satisfaction, or defect rate.