Consider a project with a budget at completion of $1,345,000 and it is supposed to be completed by today, but it is only 80 percent complete. This project has spent $1,250,000 to reach this point of…

The correct answer is D. -$269,000. Schedule Variance (SV) = Earned Value (EV) − Planned Value (PV). Since the project should be 100% complete today, PV = BAC = $1,345,000. EV = BAC × actual % complete = $1,345,000 × 0.80 = $1,076,000. SV = $1,076,000 − $1,345,000 = −$269,000. The negative result confirms the…

Risk Monitoring and Reporting

Question

Consider a project with a budget at completion of $1,345,000 and it is supposed to be completed by today, but it is only 80 percent complete. This project has spent $1,250,000 to reach this point of completion. What is the schedule variance for this project?

Options

A-$217,500
B20 percent
C-$174,000
D-$269,000

How the community answered

(38 responses)

A
3% (1)
B
11% (4)
C
5% (2)
D
82% (31)

Explanation

Schedule Variance (SV) = Earned Value (EV) − Planned Value (PV). Since the project should be 100% complete today, PV = BAC = $1,345,000. EV = BAC × actual % complete = $1,345,000 × 0.80 = $1,076,000. SV = $1,076,000 − $1,345,000 = −$269,000. The negative result confirms the project is behind schedule. Note: the Actual Cost (AC) of $1,250,000 is used for Cost Variance, not Schedule Variance.

Topics

#Earned Value Management#Schedule Variance#Project Performance Measurement

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