According to OMB Circular A-11, what analytical method should be used to measure the cost,...

OMB Circular A-11 and Capital Asset Acquisition:

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.

References:

OMB Circular A-11,Capital Programming Guide.

U.S. General Services Administration (GSA),Earned Value Management Implementation.