You are managing a project with a total budget (Budget at Completion) of $150,000 and a planned duration of 6 months. At the end of the 3rd month, the project has incurred actual costs (AC) of $90,000. According to the project plan, 50% of the work should be completed by now, but only 40% is actually completed. What are the cost variance (CV) and schedule variance (SV) for the project at this point?
Cost Variance is -$15,000; Schedule Variance is -$30,000
Cost Variance is $30,000; Schedule Variance is $15,000
Cost Variance is $15,000; Schedule Variance is $30,000
Cost Variance is -$30,000; Schedule Variance is -$15,000
The negative cost variance of -$30,000 indicates the project is over budget by $30,000, and the negative schedule variance of -$15,000 indicates the project is behind schedule by $15,000 worth of work. The other options are incorrect because they either invert the signs (indicating under budget or ahead of schedule) or mix up the values for CV and SV.
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Predictive, Plan-Based Methodologies
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