Calculate the cost variance, given the following: EV = 19 and AC = 23

The correct answer is C. -4. Cost Variance (CV) is calculated using the Earned Value Management formula: CV = EV − AC. Substituting the given values: CV = 19 − 23 = −4. The answer is −4 (C). A negative CV indicates the project is over budget - more has been spent (AC = 23) than the value of work completed…

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Question

Calculate the cost variance, given the following: EV = 19 and AC = 23

Options

A42
B4
C-4
D1.22

How the community answered

(41 responses)

A
2% (1)
B
12% (5)
C
80% (33)
D
5% (2)

Explanation

Cost Variance (CV) is calculated using the Earned Value Management formula: CV = EV − AC. Substituting the given values: CV = 19 − 23 = −4. The answer is −4 (C). A negative CV indicates the project is over budget - more has been spent (AC = 23) than the value of work completed (EV = 19). Adding the values (42) confuses CV with a sum. The value 4 (B) ignores the sign. The value 1.22 (D) is the Cost Performance Index (CPI = EV/AC = 19/23 ≈ 0.83), not the CV.

Topics

#Cost Variance#Earned Value Management#Project Cost Management#Performance Measurement

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