A project manager is reviewing the following data: Earned Value (EV) is $10,000, Actual Cost (AC) is $12,000, and Planned Value (PV) is $11,000. Based on these figures, which statement best describes the project's performance?
The project is under budget and ahead of schedule.
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.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What is cost variance (CV) in project management?
Open an interactive chat with Bash
What is schedule variance (SV) in project management?
Open an interactive chat with Bash
What do Earned Value (EV), Actual Cost (AC), and Planned Value (PV) represent?
Open an interactive chat with Bash
CAPM
Predictive, Plan-Based Methodologies
Your Score:
Report Issue
Bash, the Crucial Exams Chat Bot
AI Bot
Loading...
Loading...
Loading...
Pass with Confidence.
Project Management Package
You have hit the limits of our free tier, become a Premium Member today for unlimited access.
Military, Healthcare worker, Gov. employee or Teacher? See if you qualify for a Community Discount.
Monthly
$9.99
$9.99/mo
Billed monthly, Cancel any time.
3 Month Pass
$19.99
$6.66/mo
One time purchase of $19.99, Does not auto-renew.
BEST DEAL
Lifetime Pass
$29.99
One time purchase, Good for life.
What You Get
All Project Management Package plans include the following perks and exams .