What is Earned Value Management (EVM)?

Earned Value Management is the technique that answers the question every sponsor eventually asks: "You've spent the money and the time — what did we actually get?" It compares three numbers at any point in a project: what you planned to have done (planned value), what the completed work is worth (earned value), and what you actually spent (actual cost).

Put those three together and you can tell whether a project is ahead or behind schedule, under or over budget, and where it's heading — all with simple arithmetic. On the exam, nearly every EVM question resolves to two comparisons: EV against PV for schedule, and EV against AC for cost.