During project monitoring and controlling, a project manager wants to judge cost performance. To do so, they plan to compare the monetary worth of the work completed so far with the amount of money actually spent to date. Which calculation will provide this information?
Subtract Planned Value from Earned Value (EV - PV)
Subtract Actual Cost from Earned Value (EV - AC)
Subtract Actual Cost from Budget at Completion (BAC - AC)
The cost variance (CV) calculation shows cost performance by comparing the value of work completed to the money spent. It is obtained by subtracting Actual Cost (AC) from Earned Value (EV): CV = EV - AC. A positive result indicates the project is under budget, while a negative value means it is over budget.
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What is Earned Value (EV)?
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What is Actual Cost (AC)?
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How does Cost Variance (CV) help in project management?
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Predictive, Plan-Based Methodologies
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