nerdexam
CompTIA

PK0-003 · Question #448

If the EV is $3,000 and the AC is $4,000, which of the following is the CV for the project?

The correct answer is A. -$1,000. The CV (Cost Variance) measures the financial performance of a project by determining the difference between the Earned Value (EV) and the Actual Cost (AC).

Project management concepts

Question

If the EV is $3,000 and the AC is $4,000, which of the following is the CV for the project?

Options

  • A-$1,000
  • B$1,000
  • C-$3,000
  • D$3,000
  • EThere would be a 25 percent cost decrease.
  • FThere would be a 75 percent cost increase.
  • GThe project is over-budget.
  • HThe project is under-budget.

How the community answered

(32 responses)
  • A
    78% (25)
  • D
    13% (4)
  • G
    6% (2)
  • H
    3% (1)

Why each option

The CV (Cost Variance) measures the financial performance of a project by determining the difference between the Earned Value (EV) and the Actual Cost (AC).

A-$1,000Correct

The CV is calculated using the formula EV - AC. With an EV of $3,000 and an AC of $4,000, the CV is $3,000 - $4,000 = -$1,000.

B$1,000

This value would be correct if AC was subtracted from EV and an absolute value was taken, but CV directly reflects a negative variance if over budget.

C-$3,000

This value is incorrect and does not result from the proper Cost Variance calculation using the provided Earned Value and Actual Cost.

D$3,000

This value is incorrect and does not result from the proper Cost Variance calculation using the provided Earned Value and Actual Cost.

EThere would be a 25 percent cost decrease.

This choice describes a percentage change related to cost, not the absolute dollar value of the Cost Variance.

FThere would be a 75 percent cost increase.

This choice describes a percentage change related to cost, not the absolute dollar value of the Cost Variance.

GThe project is over-budget.

This choice describes the interpretation of a negative Cost Variance, not the calculated dollar amount of the variance itself.

HThe project is under-budget.

This choice describes the opposite interpretation of a negative Cost Variance, not the calculated dollar amount of the variance itself.

Concept tested: Cost Variance (CV) calculation

Source: https://learn.microsoft.com/en-us/azure/devops/report/powerbi/cost-variance?view=azure-devops

Topics

#earned value management#CV#cost variance#project control

Community Discussion

No community discussion yet for this question.

Sign up to join the discussion
Full PK0-003 Practice