During a project review, you find that the Earned Value (EV) is $60,000 and the Actual Cost (AC) is $70,000. What is the project's cost performance status?
To assess the project's cost performance, calculate the Cost Variance (CV) using the formula CV = EV - AC. Substituting the given values: CV = $60,000 - $70,000 = -$10,000. A negative Cost Variance indicates that the project is over budget by $10,000. The project is not under budget, and the data does not provide information about schedule performance.
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What is Cost Variance (CV) and how is it used in project management?
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What is Earned Value (EV) in project management?
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How does Earned Value Management (EVM) help in monitoring project cost and schedule performance?
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CAPM
Predictive, Plan-Based Methodologies
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