The budget variance is calculated as:
A)earned value minus planned value.
B)planned value minus actual cost.
C)earned value minus actual cost.
D)cost minus planned value.

Question

Quizplus · Accepted Answer

The budget variance is calculated by comparing the earned value (the value of the work actually completed) to the actual cost of that work. The formula for this is EV - AC. Option A (earned value minus planned value) is actually the formula for schedule variance, not budget variance. Option B (planned value minus actual cost) is the formula for cost variance, which is related to but different from budget variance. Option D (cost minus planned value) does not correspond to any recognized variance in project management.

The Budget Variance Is Calculated As