If the project has a negative cost variance, then
A) no action is needed to be taken, the project is performing well.
B) the project should be watched to be sure the project progresses.
C) more money needs to be expended on the project
D) correction actions should be taken on activities that are near-term and have large estimated costs.

Question

Quizplus · Accepted Answer

A negative cost variance indicates that the project is over budget and corrective actions need to be taken to bring the project back on track. Priority should be given to activities that are near-term and have large estimated costs to minimize the impact of the cost variance. Simply watching the project progress or expending more money on the project will not solve the problem.

If the Project Has a Negative Cost Variance, Then