A project manager is reviewing the project's performance using earned value analysis. The Planned Value (PV) for a specific period is $25,000, and the Earned Value (EV) is $20,000. What is the Schedule Variance (SV) and what does it indicate about the project's progress?
The SV is -$5,000, and the project is over budget.
The SV is +$5,000, and the project is under budget.
The SV is -$5,000, and the project is behind schedule.
The SV is +$5,000, and the project is ahead of schedule.
The correct answer is that the Schedule Variance (SV) is -$5,000, indicating the project is behind schedule. Schedule Variance is calculated with the formula SV = EV - PV. In this scenario, SV = $20,000 - $25,000 = -$5,000. A negative SV means that the value of the work completed (Earned Value) is less than the value of the work that was planned to be completed (Planned Value), signifying that the project is behind its schedule baseline. Cost Variance (CV), not Schedule Variance, is used to determine if a project is over or under budget.
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 Schedule Variance (SV) and how is it calculated?
Open an interactive chat with Bash
What are Earned Value (EV) and Planned Value (PV) in EVM?
Open an interactive chat with Bash
What does it mean for a project to be ahead, behind, or on schedule in EVM?
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...
Project Management Package Join Premium for Full Access