PMP Glossary 2026, Essential Terms for the PMP Exam

Reviewed by Bouchti on August 5, 2026. Editorial and corrections policy.

This glossary covers 50 frequently tested terms on the PMP exam. Each definition reflects PMI's usage in the PMP Examination Content Outline (ECO) and PMBOK Guide, including terminology in the exam format active since July 9, 2026.

A-C | D-F | G-L | M-P | Q-S | T-Z

A-C

Acceptance criteria

The conditions a deliverable must meet for the sponsor or customer to accept it. Defined during planning; tested frequently in scenario questions about quality and scope.

Actual Cost (AC)

The real cost incurred for work completed on a project. Used in EVM calculations: CV = EV-AC, CPI = EV / AC.

Agile

An iterative, incremental approach to project delivery. Agile methods (Scrum, Kanban, XP) emphasise flexibility, collaboration, and delivering value in short cycles (sprints).

Assumption

A factor considered to be true for planning purposes without proof. Assumptions are documented and monitored because they introduce risk if they prove false.

Backlog

An ordered list of work items (user stories, features, tasks) for an agile team. The product backlog is owned by the product owner; the sprint backlog is owned by the team.

Baseline

The approved version of a plan (scope, schedule, or cost) used as the benchmark for measuring performance. Changes require formal change control.

Budget at Completion (BAC)

The total planned budget for the project. Used in EVM forecasting: EAC = BAC / CPI (typical variance assumption).

Change Control Board (CCB)

A group responsible for reviewing, approving, or rejecting change requests to the project baselines.

Communications Management Plan

Document describing how project information will be planned, structured, monitored, and distributed to stakeholders.

Contingency Reserve

Budget or time set aside to address known risks (identified risks with response plans). Distinct from management reserve, which covers unknown risks.

Cost Performance Index (CPI)

EV / AC. Measures cost efficiency. CPI > 1.0 = under budget. CPI < 1.0 = over budget. One of the most tested EVM metrics on the PMP exam.

Critical Path

The longest sequence of dependent tasks in a project network. Any delay on the critical path delays the project end date. Float on the critical path = zero.

Practice cost management questions →

D-F

Daily Standup

A short daily meeting (typically 15 minutes) in Scrum where team members share what they did yesterday, what they will do today, and any blockers.

Decomposition

The process of breaking down deliverables and project work into smaller, more manageable components. Used in creating the WBS.

Definition of Done (DoD)

A shared understanding of what "complete" means for a user story or sprint. Ensures quality and consistency across the team.

Earned Value (EV)

The budgeted cost of work actually performed. EV = BAC × % complete. The foundation of EVM analysis.

Earned Value Management (EVM)

A technique integrating scope, schedule, and cost data to assess project performance and forecast outcomes. Core PMP exam topic.

Estimate at Completion (EAC)

Forecast of the total project cost. Most common formula: EAC = BAC / CPI. Alternate: EAC = AC + (BAC-EV) when original estimate was flawed.

Estimate to Complete (ETC)

The expected cost to finish remaining work. ETC = EAC-AC.

Float (Total Float)

The amount of time a task can be delayed without delaying the project end date. Tasks on the critical path have zero float.

Practice EVM questions →

G-L

Gold Plating

Adding features or quality beyond what the customer requested without approval. Considered a risk in PMI's framework, avoid it.

Hybrid

A project management approach combining predictive (waterfall) and agile methods. Common in organisations transitioning to agile or managing complex deliverables. Heavily tested on the current PMP exam.

Issue Log

A document tracking problems that have occurred and require resolution. Distinct from the risk register (risks that haven't happened yet).

Iteration

A fixed-length development cycle in agile (also called a sprint in Scrum). Typically 1-4 weeks, ending with a potentially shippable increment.

Kanban

An agile framework using a visual board to manage workflow. Work items move through columns (To Do, In Progress, Done). No fixed sprints; focuses on continuous flow and WIP limits.

Kickoff Meeting

A meeting marking the official start of a project or phase. Aligns stakeholders on objectives, roles, and the plan.

Lessons Learned

Knowledge gained during a project that is documented and shared to improve future projects. Captured throughout the project, not just at close.

Practice agile & hybrid questions →

M-P

Milestone

A significant point or event in the project schedule, typically marking completion of a major deliverable. Has zero duration.

Monte Carlo Simulation

A quantitative risk analysis technique using random sampling to model the probability of different project outcomes (cost or schedule).

Planned Value (PV)

The budgeted cost of scheduled work at a point in time. SV = EV-PV. SPI = EV / PV.

Predictive

A traditional (waterfall) project management approach where scope, cost, and schedule are defined upfront. Work is planned sequentially by phase.

Product Owner

In Scrum, the person responsible for maximising product value. Owns and prioritises the product backlog. Represents customer needs to the development team.

Program

A group of related projects managed together to obtain benefits not available from managing them individually.

Project Charter

Document that formally authorises a project and grants the project manager authority to use resources. Issued by the sponsor.

Project Management Plan

The master document describing how the project will be executed, monitored, and controlled. Includes subsidiary plans for scope, schedule, cost, quality, and more.

Procurement

The process of obtaining goods or services from external providers. Includes planning, conducting, controlling, and closing procurements.

Practice risk management questions →

Q-S

Quality Assurance (QA)

Process-oriented activities ensuring quality processes are followed. Distinct from quality control (QC), which inspects outputs.

Quality Control (QC)

Inspection-oriented activities that verify deliverables meet quality requirements. Uses tools like control charts, inspection, and testing.

RACI Matrix

A responsibility assignment matrix showing who is Responsible, Accountable, Consulted, and Informed for each project task.

Risk Appetite

The degree of uncertainty an organisation is willing to accept. Informs risk thresholds and response planning.

Risk Register

A document recording identified risks, their probability, impact, response strategies, and owners.

Schedule Performance Index (SPI)

EV / PV. Measures schedule efficiency. SPI > 1.0 = ahead of schedule. SPI < 1.0 = behind.

Schedule Variance (SV)

EV-PV. Positive = ahead of schedule. Negative = behind schedule. Measured in monetary units, not time.

Scrum

An agile framework using fixed-length sprints, a product backlog, daily standups, sprint reviews, and retrospectives. Roles: Product Owner, Scrum Master, Development Team.

Scrum Master

Servant leader for the Scrum team. Removes impediments, facilitates ceremonies, and protects the team from distractions. Does not manage the team.

Servant Leadership

A leadership philosophy where the leader's primary goal is to serve the team, removing obstacles, enabling growth, and supporting rather than directing. Core PMI mindset.

Stakeholder

Any individual, group, or organisation that may affect or be affected by the project. Stakeholder engagement is critical throughout all project phases.

Stakeholder Register

Document listing all stakeholders with their interests, involvement, and potential impact on the project.

Practice stakeholder management questions →

T-Z

To-Complete Performance Index (TCPI)

(BAC-EV) / (BAC-AC). The efficiency required to meet the BAC target. TCPI > 1.0 means you need to work more efficiently than planned.

Variance at Completion (VAC)

BAC-EAC. The expected budget surplus or deficit at project end. Negative = over budget.

Velocity

In agile, the amount of work (story points) a team completes per sprint. Used to forecast future sprints and release dates. Not comparable across teams.

Work Breakdown Structure (WBS)

A hierarchical decomposition of the total scope of work into deliverables and work packages. The foundation of project planning.

Work In Progress (WIP) Limit

In Kanban, the maximum number of items allowed in a workflow column at once. Limits WIP to improve flow and reduce bottlenecks.

Practice schedule management questions →

Frequently asked questions

What does EVM stand for in PMP?

EVM stands for Earned Value Management, a technique for measuring project performance by integrating scope, schedule, and cost. Key metrics: CPI (cost efficiency), SPI (schedule efficiency), EAC (forecast cost at completion).

What is the critical path in project management?

The critical path is the longest sequence of dependent tasks in a project. Any delay on the critical path delays the project end date. Tasks on the critical path have zero float.

What is the difference between risk and issue in PMP?

A risk is an uncertain event that hasn't happened yet, it may be positive (opportunity) or negative (threat). An issue is a problem that has already occurred and requires resolution. Risks go in the risk register; issues go in the issue log.

What is servant leadership in PMP?

Servant leadership is PMI's preferred leadership style for project managers, particularly in agile contexts. The PM's role is to serve the team: removing obstacles, enabling growth, and supporting rather than commanding.

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