During the execution phase of a predictive project, you gather the following earned value data: Planned Value (PV) is $150,000, Earned Value (EV) is $140,000, and Actual Cost (AC) is $160,000. Based on this information, what is the project's cost variance (CV)?
Cost Variance (CV) is calculated with CV = EV − AC. Substituting the values gives CV = $140,000 − $160,000 = -$20,000. A negative CV means the project is over budget by $20,000. The other options reflect common sign or arithmetic errors.
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Predictive, Plan-Based Methodologies
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