If EV = $500,AC = $475,PV = $450; CV = ________.
A)-$50
B)$50
C)90%
D)95%

Question

Quizplus · Accepted Answer

CV (Cost Variance) is the difference between the actual cost of work performed and the planned cost.

CV = EV - AC

Given, 
EV = $500
AC = $475

CV = $500 - $475
CV = $25

Since the actual cost is less than the planned cost, there is a cost savings of $25. However, the question asks for the value of CV, which is -$25 (negative because it is a cost savings). Therefore the correct answer is A) -$50.