For a project, the TBC = $200,000, the CEV = $100,000, the CAC = $120,000.Which of the following statements is true?
A) The project has a negative cost variance and corrective action is needed.
B) The FCAC is less than the budget and the project scope should be adjusted.
C) The project is progressing well and should be continued.
D) The CPI is more than 1.0.

Question

Quizplus · Accepted Answer

The total cost variance (TCV) can be calculated by subtracting the actual cost from the budgeted cost. TCV = TBC - AC. In this case, TCV = $200,000 - $120,000 = $80,000, which is negative. This means that the project is over budget and corrective action is needed to bring it back on track.

For a Project, the TBC = $200,000, the CEV =