Certified Government Financial Manager (CGFM) 2025 – 400 Free Practice Questions to Pass the Exam

The correct answer is Earned Value Management (EVM), as it is a project management technique specifically used to assess a project's performance and progress in terms of time, budget, and scope. EVM integrates project scope, schedule, and cost to help project managers determine how much work has been accomplished compared to what was planned, allowing for the calculation of various performance metrics.

EVM provides valuable insights by comparing the planned progress (the budgeted cost of work scheduled) with the actual progress (the actual cost of work performed) and the value of the work completed (the budgeted cost of work performed). This assessment enables project managers to forecast future performance and determine if corrective actions are necessary to keep the project on track.

While other options may provide useful information in different contexts, they do not specifically focus on the comprehensive analysis of time and budget concerning project performance. For instance, impact analysis typically evaluates the consequences of changes within a project or organization, while the Balanced Scorecard is a strategic planning and management tool that helps organizations translate their vision and strategy into actionable objectives across various perspectives. Cost-Volume-Profit Analysis focuses on understanding the relationships among cost, volume, and profit, primarily to aid in decision-making regarding pricing and profits rather than measuring project performance