CAPM Practice Question

The Schedule Variance (SV) is calculated using the formula SV = EV - PV. Here, SV = $150,000 - $130,000 = $20,000. A positive SV indicates that the project is ahead of schedule by the amount of the variance. Therefore, the project manager can conclude that the project is ahead of schedule by $20,000. The option stating the project is behind schedule is incorrect because a negative SV would indicate a delay. The option stating the project is on schedule is incorrect because an SV of zero would mean the project is exactly on schedule. The option about being over budget relates to Cost Variance (CV), not Schedule Variance.