Amy is working on a project which is forty percent complete though it was scheduled to be fifty percent complete as of today. Management has asked Amy to report on the schedule variance for her…

Question

Options

• A-$75,000
• B-$42,000
• C-$45,000
• D-$65,000

• A
  82% (23)
• B
  4% (1)
• C
  4% (1)
• D
  11% (3)

Explanation

The schedule variance is found by subtracting the planned value from the earned value. The earned value is the percentage of the project completeness multiplied by the BAC. Planned value is the percetage of where the project should be at this time multiplied by the BAC. 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. In this example, SV = 300,000 - 375,000 Answer options C, B, and D are incorrect. These are not the correct values for the schedule

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