CAPM Practice Question

To assess schedule performance, the project manager should calculate the Schedule Variance (SV) using the formula SV = EV - PV. In this case, SV = $120,000 - $150,000 = (-$30,000). A negative schedule variance indicates the project is behind schedule because it has earned less value than planned at this point. The option stating the project is ahead of schedule is incorrect because the negative variance shows a delay, not an advancement. The option stating the project is on schedule is incorrect because the variance is not zero. The option stating the project is over budget is incorrect because it refers to cost variance, not schedule variance.