Earned value can be based on percent completion of which of the following?

• A. Accounts payable
• B. Inventory purchased
• C. Work performed
• D. Cash received

Answer: (C)

Verified step by step guidance

1. Understand the concept of earned value: Earned value is a project management metric that measures the value of work performed based on the percentage of completion of tasks or activities. It helps in assessing project progress and performance.
2. Identify the correct basis for earned value: Earned value is calculated based on the work performed, not on accounts payable, inventory purchased, or cash received. This is because earned value reflects the actual progress of the project rather than financial transactions or inventory levels.
3. Clarify why work performed is the correct basis: Work performed directly correlates to the completion of tasks and activities within a project. It provides a tangible measure of progress, which is essential for calculating earned value accurately.
4. Exclude incorrect options: Accounts payable, inventory purchased, and cash received are financial metrics that do not directly measure the progress of work performed. They are related to financial management rather than project performance measurement.
5. Apply the concept in practice: To calculate earned value, determine the percentage of completion for each task or activity, multiply it by the planned value (budgeted cost of work scheduled), and sum up the values for all completed tasks to get the total earned value.