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PMI-SP · Question #347

You are the project manager of the NHQ project. Your project has a budget of $1,258456 and is scheduled to last for three years. Your project is currently forty percent complete though it should be…

The correct answer is D. -$54,044. The variance at completion can be found by subtracting the estimate at completion from the budget at completion. In this instance, it is: Variance at completion = EAC - BAC = $1,258,456 - $1,312,500. Answer option C is incorrect. You can calculate the variance at completion…

Schedule Monitoring and Controlling

Question

You are the project manager of the NHQ project. Your project has a budget of $1,258456 and is scheduled to last for three years. Your project is currently forty percent complete though it should be forty-five percent complete. In order to reach this point of the project, you have spent $525,000. Management needs a performance report regarding the NHQ project. Management is concerned that this project will be over budget upon completion. Based on the current performance value what should you report to management regarding the variance at completion?

Options

  • A-$21,618
  • B-$62,922
  • CZero - you would not know what this will cost until the project is complete.
  • D-$54,044

How the community answered

(41 responses)
  • A
    5% (2)
  • B
    10% (4)
  • C
    17% (7)
  • D
    68% (28)

Explanation

The variance at completion can be found by subtracting the estimate at completion from the budget at completion. In this instance, it is: Variance at completion = EAC - BAC = $1,258,456 - $1,312,500. Answer option C is incorrect. You can calculate the variance at completion. Answer option A is incorrect. This is the cost variance for the project. Answer option B is incorrect. This is the schedule variance for the project.

Topics

#variance at completion#VAC#earned value management#budget forecasting

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