Question 430
A wind farm project has CPI below one despite an apparently satisfactory cash-flow report dominated by advance supplier invoices. The team proposes this response: Reconcile earned value, actual cost, and cash timing before explaining financial performance to the sponsor. Which evidence BEST shows that this response has delivered its intended result?
Explanation
Correct Answer
This measured result tests the stated action in the present scenario: Reconcile earned value, actual cost, and cash timing before explaining financial performance to the sponsor. The evidence is A consistent status report separates cash commitments from earned work and shows cost variance with definitions. Without that evidence, the unresolved failure is: Treating early vendor payments as equivalent to completed construction overstates delivered progress.
Incorrect Answers
Reserve records identify the known risk allowance, approved drawdown, and updated remaining exposure. However, this does not establish the required outcome: a consistent status report separates cash commitments from earned work and shows cost variance with definitions.
Early installations reduce untreated-water exposure among prioritized households and track underserved coverage. However, this does not establish the required outcome: a consistent status report separates cash commitments from earned work and shows cost variance with definitions.
Operations confirms access to manuals, spares, escalation contacts, and warranty responsibilities. However, this does not establish the required outcome: a consistent status report separates cash commitments from earned work and shows cost variance with definitions.