PMP Glossary 2026: 54 Key Terms, Formulas & Acronyms

The total cost actually incurred for the work performed during a given period. It is compared with earned value, not planned value, to judge how efficiently money is being spent.

On the examTrap: comparing AC with PV to judge budget health. Cost variance is EV minus AC, and a negative result means the project is over budget.

The specific conditions a single user story, feature or deliverable must satisfy for the customer or product owner to accept it. They differ for each item and are agreed before work starts.

On the examThe product owner rejects a story because it misses a required behavior, so its acceptance criteria were not met. Questions pair this with the Definition of Done to test the difference.

A formally chartered group responsible for reviewing, evaluating, approving, deferring or rejecting proposed changes to the project, and for recording and communicating its decisions.

On the examThe PM analyzes impact and submits; the CCB decides. Distractors have the PM or an influential stakeholder approving a baseline change directly.

Don’t confuse with Change Request

A formal proposal to modify a project baseline, document, deliverable or process. It may cover corrective action, preventive action, defect repair or an update, and is assessed before any approval.

On the examStandard sequence: analyze impact, submit the change request, get a decision from the change control board, then update plans. Implementing the change first is almost always wrong.

Also called problem solving: a conflict-resolution approach where parties openly examine differing viewpoints to reach a consensus that satisfies everyone's underlying interests. It takes time and trust but produces lasting, win-win agreements.

On the examUsually the preferred PMP answer when time allows and the relationship matters. If the question stresses an urgent deadline or a hard deadlock, a faster technique may beat it.

Don’t confuse with Compromising

The number of potential communication paths among project stakeholders, calculated as n(n-1)/2 where n is the number of people. Channels grow much faster than headcount as the team expands.

On the examClassic calculation: the team grows from 8 to 12 people, how many channels were added? 66 minus 28 equals 38. Remember to include yourself in n.

Also called reconciling: each side gives up something to reach a partially satisfying agreement. It settles conflict quickly but can leave both parties feeling they lost something important.

On the examChosen when parties have equal power and a quick, temporary settlement is needed. Candidates pick it by instinct; the exam prefers collaborating whenever a full consensus is realistic.

Budget or time set aside within the cost baseline for identified risks, the known-unknowns. The project manager can usually apply it when a planned risk occurs, without a change request.

On the examCue: a risk already in the risk register materializes, so use the contingency reserve. For an unforeseen event, management reserve and management approval are needed.

Don’t confuse with Management Reserve

The total cost of achieving quality over the product life cycle: prevention and appraisal costs (cost of conformance) plus internal and external failure costs (cost of nonconformance).

On the examThe 2026 ECO names CoQ explicitly. Typical question: investing in training and reviews (prevention) is preferred because it is cheaper than defects found by customers (external failure).

An agreement where the buyer pays the seller's allowable actual costs plus a fee, such as cost plus fixed fee or cost plus incentive fee. The buyer carries most of the cost risk.

On the examChosen when scope is uncertain or likely to evolve. Questions ask which party bears the most risk; under a cost-plus contract it is the buyer.

Don’t confuse with Fixed-Price Contract

A cost-efficiency ratio calculated as EV divided by AC. A value above 1.0 means under budget; below 1.0 means each dollar spent is earning less than a dollar of planned work.

On the examCPI of 0.8 means 80 cents of work for every dollar spent. Typical question: interpret CPI and SPI together, such as over budget but ahead of schedule.

Don’t confuse with SPI

A schedule compression technique that adds resources, such as overtime or extra staff, to critical path activities to shorten duration for the least incremental cost. It always increases cost.

On the examOnly crash activities on the critical path; crashing a noncritical task wastes money. Cue: extra budget is available but overlapping activities is risky or impossible.

Don’t confuse with Fast Tracking

The longest sequence of dependent activities through a schedule network, which sets the shortest possible project duration. Activities on it normally have zero total float, so any delay moves the end date.

On the examGraphic-based network diagram questions ask you to find the path and its length. A delay on a noncritical activity only matters once it exceeds that activity's float.

A short, time-boxed daily meeting, typically 15 minutes, where the team synchronizes on progress, plans the next day's work and surfaces impediments. Detailed problem-solving happens afterward, not during it.

On the examDistractor pattern: the standup becomes a long problem-solving or report-to-the-manager session. The correct response keeps it brief and takes detailed discussion offline with only the people involved.

A team-wide checklist of criteria every increment must meet before it counts as complete, such as coded, tested, reviewed and documented. It applies to all work items, not to a single story.

On the examCue: work declared finished but not tested or integrated. The fix is to agree on or enforce the Definition of Done. Do not confuse with story-specific acceptance criteria.

Don’t confuse with Acceptance Criteria

The expected total cost of the project when finished, based on performance so far. The common formula when current cost efficiency is expected to continue is BAC divided by CPI.

On the examRead the assumption: if the variance is typical, use BAC/CPI; if it was a one-off, use AC plus (BAC minus EV). Picking the wrong formula is the usual trap.

Don’t confuse with ETC

Conditions not under the project team's direct control that influence, constrain or direct the project, such as organizational culture, market conditions, regulations and infrastructure.

On the examDistinguish from OPAs: laws, culture and market conditions are EEFs. Questions list a factor and ask which category it belongs to, or what constrains the plan.

Don’t confuse with OPA

The ability to recognize and manage your own emotions and to read and influence the emotions of others. It underpins trust, conflict handling, motivation and stakeholder influence on any project.

On the examSignals include a frustrated stakeholder, a demotivated team member or a tense meeting. The best answer usually starts with listening privately and understanding the person before escalating or enforcing rules.

The expected cost to finish all remaining work from today, calculated as EAC minus AC, or produced by a fresh bottom-up estimate of the work still to do.

On the examWording decides it: 'how much more will it cost' is ETC; 'what will the total cost be' is EAC. Each appears as a distractor for the other.

Don’t confuse with EAC

The budgeted value of the work actually completed to date, calculated as percent complete multiplied by the budget at completion. It is the core measure earned value management compares against plan and cost.

On the examMost EVM questions start by computing EV. Example: 40% complete on a 100,000 budget gives an EV of 40,000. Do not confuse it with money actually spent.

Don’t confuse with PV

A schedule compression technique that performs activities in parallel, or overlaps them, when they would normally run in sequence. It saves time without adding direct cost but increases risk and possible rework.

On the examCue: the schedule must shorten and the budget is fixed, so fast track. If the question says rework risk is unacceptable, crashing may be the better choice.

Don’t confuse with Crashing

A procurement agreement where the seller delivers defined scope for a set price, so the seller carries most of the cost risk. Variants include firm fixed price and fixed price incentive fee.

On the examBest when scope is well defined. Cue: the buyer wants to minimize cost risk and requirements are clear. Scope changes become expensive and need a contract change.

Don’t confuse with Cost-Reimbursable Contract

The amount of time an activity can slip without delaying the early start of any immediately following activity. It is always less than or equal to the activity's total float.

On the examThe question wording decides it: 'without delaying the next activity' means free float; 'without delaying the project' means total float.

Don’t confuse with Total Float

A development approach that blends predictive and adaptive elements, for example a fixed, plan-driven hardware phase alongside iterative software delivery. Chosen when parts of the work are well understood and others are uncertain.

On the examAbout 60% of 2026 items are agile or hybrid. Cue: stable regulatory requirements plus evolving user features, so combine plan-driven and iterative methods rather than forcing one.

Any obstacle that slows or blocks the team from making progress, such as a missing approval, an unavailable environment or a dependency on another team. The servant leader works to remove it.

On the examThe ECO task on removing impediments sits in Business Environment. Surfaced at the standup, it is prioritized and removed by the PM; telling the team to cope alone is weaker.

A large, highly visible display of project information, such as a task board, burndown chart or risk list, placed where anyone can see current status without asking. Also called a big visible chart.

On the examThe agile answer for transparency: stakeholders keep asking for status, so make progress visible with an information radiator instead of writing more status reports.

A document used to record and track current problems, gaps or conflicts affecting the project, with an owner, due date and status for each until it is resolved.

On the examPast tense in the scenario (the vendor has missed a delivery) means issue, not risk. Log it, assign an owner and resolve it with the relevant stakeholders.

Don’t confuse with Risk Register

A project document that captures knowledge gained throughout the project, what worked, what did not and recommendations, so it can be applied now and transferred to organizational process assets at closure.

On the examUpdate it continuously, not only at closure; the exam penalizes waiting until the end. At close, lessons move into OPAs so future projects can use them.

Don’t confuse with Retrospective

Budget withheld for unidentified risks, the unknown-unknowns. It sits outside the cost baseline but inside the total project budget, and using it normally requires management approval and a baseline change.

On the examAn unforeseen event with no entry in the risk register points here. Management reserve is not part of EVM calculations because it sits outside the performance baseline.

Don’t confuse with Contingency Reserve

The smallest version of a product that delivers enough value to early users to validate assumptions and gather feedback, letting the team learn cheaply before investing in the full solution.

On the examLinked to the ECO task on value-based delivery. When a sponsor wants early proof of value or real user feedback, releasing an MVP beats waiting for a complete product.

Plans, processes, policies, templates and knowledge bases specific to and used by the performing organization, including historical information and lessons learned from past projects.

On the examThe 2026 ECO names OPAs under governance and continuous improvement. Cue: templates, past lessons or internal procedures, things the organization controls and can update itself.

Don’t confuse with EEF

A framework for scanning the external business environment across political, economic, social, technological, legal and environmental factors that could affect a project's scope, risks or value.

On the examSupports the 2026 ECO task on evaluating external business environment changes. Cue: a new regulation or market shift, so assess its impact on scope or the backlog and reprioritize.

A stakeholder analysis tool that plots each stakeholder by level of authority and level of concern about the project, producing four strategies: manage closely, keep satisfied, keep informed and monitor.

On the examAsked when deciding how much attention a stakeholder needs. High power and high interest means manage closely; a powerful but disinterested executive is kept satisfied, not flooded with detail.

Don’t confuse with Stakeholder Engagement Assessment Matrix

An ordered list of everything that might be needed in the product, usually written as user stories. The product owner continuously refines and reprioritizes it based on value and stakeholder feedback.

On the examThe adaptive counterpart to scope. New requests go to the product owner to prioritize in the backlog; the team does not add them mid-sprint or accept them directly.

The document, issued by the sponsor, that formally authorizes the project and gives the project manager authority to apply organizational resources. It records high-level objectives, success criteria, key risks and the summary budget.

On the examIf there is no charter yet, the PM cannot commit resources. Questions test that the sponsor, not the project manager, issues and signs it.

Don’t confuse with Team Charter

The framework of structure, rules, decision rights, escalation paths, reporting and policies that directs and oversees the project, keeping it aligned with organizational strategy and compliance obligations.

On the examThe 2026 ECO opens Business Environment with governance. Cue: a decision exceeds the PM's authority threshold, so follow the defined escalation path rather than deciding alone.

The authorized budget assigned to the work scheduled to be completed by a given date. The cumulative planned value at the end of the project equals the budget at completion (BAC).

On the examNeeded for schedule variance and SPI. If 50% of the work should be finished by now on a 200,000 project, PV is 100,000 regardless of actual progress.

A responsibility assignment matrix that maps each deliverable or activity to the people who are responsible, accountable, consulted or informed. Only one person should be accountable for each item.

On the examCue: confusion over who approves or owns a deliverable. Creating or updating the RACI is the fix; watch for options with two accountable people, which break the rule.

A regular team meeting at the end of an iteration or phase where the team inspects how it worked and agrees concrete improvements to its process, tools and collaboration.

On the examThe same problem recurring across sprints? Raise it in the retrospective. It focuses on how the team works, not on demonstrating the product increment to stakeholders.

Don’t confuse with Lessons Learned Register

A risk response that takes early action to reduce the probability or impact of a threat to an acceptable level, such as adding testing, prototyping or choosing a more stable supplier.

On the examCue verbs: reduce, lessen, lower the likelihood. If the response removes the threat entirely, that is avoid; if it shifts ownership to a third party, that is transfer.

Don’t confuse with Risk Transfer

The repository of identified risks with details such as probability, impact, owner, triggers and planned responses. It is created during risk identification and updated throughout the project.

On the examSomething that might happen goes in the risk register; once it happens it becomes an issue. The ECO explicitly lists recognizing when a risk becomes an issue.

Don’t confuse with Issue Log

A risk response that shifts ownership of a threat and its financial impact to a third party, for example through insurance, warranties, performance bonds or fixed-price contracts. The risk itself does not disappear.

On the examInsurance or outsourcing a risky component is the tell. Transfer usually costs a premium and moves responsibility, but does not reduce the probability of the event.

Don’t confuse with Risk Mitigation

A leadership style where the project manager puts the team's needs first: removing obstacles, shielding members from distractions, and coaching and building capability so the team can self-organize and deliver value.

On the examAgile and hybrid scenarios default to it. When a team is blocked, the servant-leader answer removes the impediment or coaches; answers that assign tasks or dictate the fix are usually distractors.

A schedule-efficiency ratio calculated as EV divided by PV. A value above 1.0 means ahead of schedule and below 1.0 means behind; it drifts back toward 1.0 as the project finishes.

On the examBehind schedule with an SPI of 0.75? Look for compression or re-planning answers. Remember EV is always the numerator in both performance indexes.

Don’t confuse with CPI

A table comparing each stakeholder's current engagement level (unaware, resistant, neutral, supportive or leading) with the desired level, so the gap between them drives targeted engagement actions.

On the examLook for C and D markers in a table: current versus desired. Scenarios with a resistant key stakeholder expect you to close that gap, not simply record it.

Don’t confuse with Power/Interest Grid

A relative unit agile teams use to estimate the size of backlog items, combining effort, complexity and uncertainty. Points are team-specific and should not be compared across teams or converted directly to hours.

On the examThe 2026 ECO names story points under schedule estimation. Trap answers compare two teams' point totals or ask the PM to convert points to hours for performance reviews.

Personal knowledge that is hard to write down, such as experience, insight, judgment and know-how. It is shared through conversation, mentoring, pairing and storytelling rather than through documents.

On the examTied to the ECO task on knowledge transfer. If a key expert is leaving, answers involving pairing, shadowing or workshops beat simply archiving documents in a repository.

Deliberately adapting the development approach, processes, artifacts and governance to fit the project's size, complexity, risk and organizational context, rather than applying every practice by default.

On the examAppears whenever a scenario says the standard methodology feels too heavy or too light. The right answer adjusts the approach to context; applying all processes blindly is the trap.

Don’t confuse with Hybrid Approach

A document the team creates together that records its values, working agreements, ground rules, decision-making process and communication norms. It sets shared expectations for how members behave and work with each other.

On the examThe go-to answer when team members break ground rules or argue about how to work together: refer to, or create, the team charter before escalating to functional managers.

Don’t confuse with Project Charter

The amount of time an activity can slip without delaying the project finish date, calculated as late start minus early start, or late finish minus early finish. Also called slack.

On the examExpect network diagram math: compute LS minus ES. Negative total float means the schedule already misses its required end date and needs compression.

Don’t confuse with Free Float

A model describing five stages new teams move through: forming, storming, norming, performing and adjourning. Teams can slide back to an earlier stage when members join, leave or the work changes.

On the examScenario describes arguments and power struggles right after a new member joins - that is storming. Questions ask which stage the team is in or what the leader should do next.

The projected budget surplus or deficit at project end, calculated as BAC minus EAC. A negative VAC means the project is forecast to finish over budget.

On the examOften the final step of a multi-part EVM question after computing EAC. The sign matters: positive means under budget, negative means over budget.

The amount of work, usually measured in story points, a team completes in one iteration. The average of recent iterations is used to forecast how many iterations the remaining backlog will take.

On the examForecast calculation: 240 points remaining at an average velocity of 30 means about 8 more iterations. Velocity measures team capacity, never individual productivity.

Don’t confuse with Story Points

A hierarchical decomposition of the total scope of work into progressively smaller deliverables, down to work packages that can be estimated, scheduled and assigned. Work not in the WBS is out of scope.

On the examPredictive scenarios: a stakeholder asks for work that is not in the WBS, so it goes through change control. Also tested as the basis for cost and schedule estimates.

Don’t confuse with Product Backlog