Fred is the project manager of the NHA project. This project has a BAC of $2,456,900 and is sixty percent complete. Fred has crashed the project, which has driven the project costs to date to…

The correct answer is B. -$51,000. The cost variance for the project is -$51,000. You can find the cost variance by using the formula earned value minus planned value. In this instance, it is: CV = EV - AC = (0.60* 2,456,900) - 1,525,140 = -51,000 Answer option C is incorrect. -$85,000 is the project's variance…

Schedule Monitoring and Controlling

Question

Fred is the project manager of the NHA project. This project has a BAC of $2,456,900 and is sixty percent complete. Fred has crashed the project, which has driven the project costs to date to $1,525,140, but his project is five percent more complete than what was planned. What is the cost variance for this project that Fred needs to report to management?

Options

A$122,845
B-$51,000
C-$85,000
DZero

How the community answered

(16 responses)

A
6% (1)
B
75% (12)
C
13% (2)
D
6% (1)

Explanation

The cost variance for the project is -$51,000. You can find the cost variance by using the formula earned value minus planned value. In this instance, it is: CV = EV - AC = (0.60* 2,456,900) - 1,525,140 = -51,000 Answer option C is incorrect. -$85,000 is the project's variance at completion. Answer option A is incorrect. $122,845 is the project's schedule variance. Answer option D is incorrect. There is a cost variance on this project of -$51,000.

Topics

#cost variance#earned value management#CV calculation#crashing impact

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