A negative cost variance combined with a negative schedule variance is an indicator of
A) actual cost exceeding earned value.
B) planned value exceeding earned value.
C) budget over-runs.
D) behind schedule.
E) All of these alternatives are correct.

Question

Quizplus · Accepted Answer

A negative cost variance indicates that the actual cost of work performed is more than the budgeted amount (earned value), and a negative schedule variance indicates that the work is behind schedule (planned value exceeding earned value). Both conditions together imply budget overruns and being behind schedule.

A Negative Cost Variance Combined with a Negative Schedule Variance