CAPM Practice Question

To determine the project's performance, we calculate the cost variance and schedule variance. The cost variance (CV) is calculated as CV = EV - AC = $10,000 - $12,000 = -$2,000. A negative cost variance means the project is over budget. The schedule variance (SV) is calculated as SV = EV - PV = $10,000 - $11,000 = -$1,000. A negative schedule variance indicates the project is behind schedule. Therefore, the project is over budget and behind schedule. The other options either misinterpret the variances or incorrectly assess the project's status based on the provided data.