http://www.alsenosy.com | http://www.professionalengineers.usprojectiscompletedbecausealloftheplannedvalueswillhavebeenearned.Schedulevarianceis
bestusedinconjunctionwith criticalpathmethodology(CPM)schedulingandriskmanagement.
Equation:SV=EV–PV
Costvariance.Costvariance(CV)istheamountofbudgetdeficitorsurplusatagivenpointintime,
expressedas the differencebetweenearnedvalue and the actualcost.It isameasure of cost
performanceonaproject.Itisequaltotheearnedvalue(EV)minustheactualcost(AC).Thecost
varianceattheendoftheprojectwillbethedifferencebetweenthebudgetatcompletion(BAC)and
theactualamountspent.TheCVisparticularlycriticalbecauseitindicatestherelationshipof physical
performancetothecostsspent.NegativeCVisoftendifficultfortheprojecttorecover.Equation:CV
=EV–AC
122.Answer:B.
PMBOK® Guide, page 262 , Section 7. 4. 2. 2
Earned Value Management
...
Variances from the approved baseline will also bemonitored:
Costvariance.Costvariance(CV)istheamountofbudgetdeficitorsurplusatagivenpointintime,
expressedas the differencebetweenearnedvalue and the actualcost.It isameasure of cost
performanceonaproject.Itisequaltotheearnedvalue(EV)minustheactualcost(AC).Thecost
varianceattheendoftheprojectwillbethedifferencebetweenthebudgetatcompletion(BAC)and
theactualamountspent.TheCVisparticularlycriticalbecauseitindicatestherelationshipof physical
performancetothecostsspent.NegativeCVisoftendifficultfortheprojecttorecover. Equation:
CV=EV–AC
123.Answer:B.
PMBOK® Guide, page 261 , Section 7. 4. 2. 2
Earned Value Management
Earned value management (EVM) develops and monitors three key dimensions for each work
package and control account:
...
Earnedvalue.Earnedvalue(EV)isameasureofworkperformedexpressedintermsofthebudget
authorized forthat work.It is the budget associatedwith the authorized work thathas been
completed.TheEVbeingmeasuredneedstoberelatedtothePMB,andtheEVmeasuredcannotbe
greaterthanthe authorizedPV budgetforacomponent.TheEVis oftenusedtocalculate the
percentcompleteofaproject.ProgressmeasurementcriteriashouldbeestablishedforeachWBS
component to measure work in progress. Project managersmonitor EV, bothincrementally to
determinecurrentstatusandcumulativelytodeterminethelong-termperformancetrends.
124.Answer:B.
PMBOK® Guide, page 263 , Section 7. 4. 2. 2 ; and Figure 7 – 12