Question on Cost Variance

Submitted by kiranu23 on Mon, 08/09/2010 - 04:31

You are managing a project with total budget of $ 36,000 to be finished in 1 year . You are in the end of 6th month and currently project is on schedule; however the actual cost of the project is $20,000. What is the cost variance in the project?
 
  
 
 
    A. + $2000
  
 
    B. - $2000
  
 
    C. +$16,000
  
 
    D. -$ 6,000


 


Can anyone solve this and provide explaination please.

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pkukilla

Mon, 08/09/2010 - 05:28

BAC = 36.000 ( for 1 yr)

PV =(36000/12)*6=18000 

In the question its written the project is on schedule so  SV=0 (PV-EV=0)

PV-EV=0 --> PV =EV

Cost Variance CV=EV-AC = -2000

 

 

 

kiranu23

Mon, 08/09/2010 - 05:31

Thanks a lot...

pkukilla

Mon, 08/09/2010 - 05:34

 you are welcome.. Please can you tell the source of that question