AGA Examination 3: Governmental Financial Management and Control (GFMC) GFMC Question # 18 Topic 2 Discussion
GFMC Exam Topic 2 Question 18 Discussion:
Question #: 18
Topic #: 2
According to OMB Circular A-11, what analytical method should be used to measure the cost, schedule and performance goals of a capital asset acquisition project?
OMB Circular A-11 mandates the use ofearned value management (EVM)for measuring cost, schedule, and performance goals in capital asset acquisition projects.
EVM integrates project scope, schedule, and cost data to assess project performance and forecast outcomes.
Explanation of Answer Choices:
A. Earned value management: Correct. EVM is the prescribed method for tracking progress on capital projects under OMB Circular A-11.
B. Net present value: Used for financial analysis, such as determining the economic value of future cash flows, but not for tracking project progress.
C. Future value: Measures the value of an investment at a future point, not applicable to project tracking.
D. Regression analysis: A statistical method for identifying relationships between variables, not for measuring project performance.
[:, OMB Circular A-11,Capital Programming Guide., U.S. General Services Administration (GSA),Earned Value Management Implementation., ]
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