Certified Government Financial Manager (CGFM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

Earned Value Management (EVM) is a key project management technique that helps assess both schedule and cost performance by integrating the measurement of project scope, schedule, and cost.

When utilizing EVM, project managers track the progress of the project by comparing the work that has been planned (the budgeted cost of work scheduled) with the actual work completed (the actual cost of work performed) and the value of that work (the earned value). This methodology allows for objective performance measurements, making it possible to identify variances and trends that indicate how well the project is adhering to its planned timeline and budget.

By focusing on these two critical areas—schedule and cost—EVM provides valuable insights into a project's health, enabling timely corrective actions to keep the project on track. In contrast, other options mentioned do not align with the primary objectives of EVM. For instance, while quality and compliance are important aspects of project management, they are not direct focuses of EVM. Similarly, risk and uncertainty, as well as stakeholder engagement and satisfaction, are vital to project management but are assessed through different frameworks and tools, rather than through the EVM approach.