PM Study critical path question
|Question No : 129
What is the status of the project?
|Choice 1||Behind schedule, under budget|
|Choice 2||Ahead of schedule, under budget|
|Choice 3||Ahead of schedule, over budget|
|Choice 4||Behind schedule, over budget|
Earned value (EV)
= The sum of the approved cost estimates for activities completed during a given period
= Estimated cost of work that is completed after day 11
= $ 5,000 + $ 5,000 + $5,000*.50 = $ 12,500 (because Task A, Task B are complete, Task C is 50% complete)
= Present work to be completed after day 11
= $ 5,000 + $ 5,000 + $ 5,000 * (1/5) (because at end of day 11, according to our plan, Task A, Task B should be complete; Task C only one day out of 5 days should be complete, i.e., 20% complete ($ 1,000 of work should be done)
= $ 11,000.
Actual cost (AC)
= Actual Cost of work completed
= $ 13,000.
Schedule variance (SV)
= EV - PV = $ 12,500 - $ 11,000 = $ 1,500
Since SV is positive, we are ahead of schedule.
Cost variance (CV)
= EV - AC = $ 12,500 - $ 13,000 = - $ 500
Since CV is negative, we are over budget.
would you please help me to with this question
i just want to know why he used CV & SV instead of CPI & SPI
when we can use variance and when we can use index ?