Burn rate

[Faiz Rehman]

Q:

A project was assessed & the following Earned Value data  have been found:

PV= 750,000 $
EV= 750,000 $
AC= 750,000 $

What is the Burn rate of the project???


a. 1
b. .83
c. 1.10
d. 1.20

Ans: d

i see this question , & surprise or may be my lack of knowledge, because i didnt see the Burn Rate in any book?  this question is in one of exam simulation?

comments, please

[Ulti Khopdi]

burn rate in Project mgmt is 1/CPI.

Cheers

Dev

[fatma ahmed]

According to the below definition, the answer should be a

BR=1/CPI= 1/ (750,000/750,000) = 1

Burn rate in project management

Aside from financing, the term burn rate is also used in project management to determine the rate at which hours (allocated to a project) are being used, to identify when work is going out of scope, or when efficiencies are being lost.

In earned value management, burn rate is calculated via the formula, 1/CPI, where CPI stands for Cost Performance Index, which is equal to Earned Value / Actual Cost.

Source: Wikipedia

http://en.wikipedia.org/wiki/Burn_rate

you can check also:

http://www.hyperthot.com/pm_cscs.htm

Any thoughts on why the answer is d??

[Sugumaran]

Please note PMP exam can have questions which is not defined in the PMBOK guide.

the term burn rate is used to determine the rate at which hours (allocated to a project) are being used, to identify when work is going out of scope, or when efficiencies are being lost.

In earned value management, burn rate is calculated via the formula, 1/CPI, where CPI stands for Cost Performance Index, which is equal to Earned Value / Actual Cost.

Applying this formula gives the answer as A.1

--
A mistake is an opportunity to be better, and to show remorse and a lesson learned.

Cheers
Sugu  PMP

[Faiz Rehman]

Thanks Fatima