Use the S-curve where the solid line is actual cost and the dashed line is budgeted cost to choose the BEST statement.
A) The project never experiences negative variance.
B) With regards to budget, the project starts badly but finishes well
C) With regards to budget, the project starts well but finishes badly.
D) The project is in a constant state of positive variance.

Question

Use the S-curve where the solid line is actual cost and the dashed line is budgeted cost to choose the BEST statement. 
A) The project never experiences negative variance. 
B) With regards to budget, the project starts badly but finishes well 
C) With regards to budget, the project starts well but finishes badly. 
D) The project is in a constant state of positive variance.

Quizplus · Accepted Answer

The S-curve shows that initially, the actual cost was higher than the budgeted cost (negative variance). However, as the project progressed, the actual cost came closer to the budgeted cost and eventually ended up lower than the budgeted cost (positive variance). This pattern is consistent with option B, which states that the project starts badly (with negative variance) but finishes well (with positive variance). Option A and D are incorrect as they assume that the project is always in a positive variance state, which is not true. Option C is incorrect as it assumes that the project finishes badly, which is also not supported by the S-curve.

Use the S-Curve Where the Solid Line Is Actual Cost