You work as a Project Manager for Tech Perfect Inc. Several projects are running under your supervision. Martha, the team leader of a project, provides you performance indexes of her project. The…

Question

Options

• ASpending is right on target.
• BCosts are lower than planned.
• CThe project is behind schedule.
• DCosts are higher than planned.

• A
  4% (1)
• C
  9% (2)
• D
  87% (20)

Explanation

According to the question, the cost variance of the project is -20, which is a negative figure. The negative CV depicts that the costs are higher than planned. What is CV? Cost variance (CV) is a measure of cost performance on a project. The variance notifies if costs are higher than budgeted or lower than budgeted. The cost variance is calculated based on the following formula: CV = Earned Value (EV) - Actual Cost (AC) A positive value means that spending is less than budgeted, whereas a negative value indicates that costs are higher than originally planned for the project. Answer option B is incorrect. This result is drawn when the CV value is positive. Answer option A is incorrect. If the CV is zero, it shows that spending is right on target. Answer option C is incorrect. This result is depicted by viewing the schedule variance (SV), not the CV. What is SV? Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) - Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target. Exam Questions, Study Guides, Practice Tests. Lead the way to help you pass any IT Certification exams, 100% Pass Guaranteed or Full Refund. Especially Cisco, CompTIA, Citrix, EMC, HP, Oracle, VMware, Juniper, Check Point, LPI, Nortel, EXIN and so on. Our Slogan: First Test, First Pass. Help you to pass any IT Certification exams at the first try. You can reach us at any of the email addresses listed below. Any problems about IT certification or our products, you could rely upon us, we will give you satisfactory answers in 24 hours.

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