A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the cost variance for the project?
A) Under 1.00K
B) 1.00K− 1.20K
C) 1.21K− 1.40K
D) 1.41K − 1.60K
E) Over 1.60K

Question

Quizplus · Accepted Answer

Cost Variance (CV) = Earned Value (EV) - Actual Cost (AC). To find EV, we calculate the planned cost for the actual completion: (22K*100%)+(14K*90%)+(12K*75%)+(28K*10%) = 22K+12.6K+9K+2.8K = 46.4K. AC is given as $40K. Thus, CV = 46.4K - 40K = 6.4K, which is over 1.60K.

A Project Has Four Activities: A, B, C, and D