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Exam PMI-SP topic 1 question 55 discussion

Actual exam question from PMI's PMI-SP
Question #: 55
Topic #: 1
[All PMI-SP Questions]

Fred is the project manager of the NHA project. This project has a BAC of $2,456,900 and is sixty percent complete. Fred has crashed the project, which has driven the project costs to date to $1,525,140, but his project is five percent more complete than what was planned. What is the cost variance for this project that
Fred needs to report to management?

  • A. $122,845
  • B. -$51,000
  • C. -$85,000
  • D. Zero
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️
The cost variance for the project is -$51,000. You can find the cost variance by using the formula earned value minus planned value. In this instance, it is: CV =
EV - AC = (0.60* 2,456,900) - 1,525,140 = -51,000
Incorrect Answers:
A: $122,845 is the project's schedule variance.
C: -$85,000 is the project's variance at completion.
D: There is a cost variance on this project of -$51,000.
by farbij at Nov. 28, 2019, 5:47 p.m.

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Miotti
1 year, 3 months ago
Given information: BAC (Budget at Completion) = $2,456,900 Percent Complete = 65% Costs to Date = $1,525,140 Now, let's recalculate the EV: EV = BAC * Percent Complete = $2,456,900 * 65% = $1,596,385 ACWP remains the same: ACWP = Costs to Date = $1,525,140 CV = EV - ACWP = $1,596,385 - $1,525,140 = $71,245 Therefore, the cost variance (CV) for this project, given the updated percentage complete of 65%, is $71,245.
upvoted 1 times
VinKCh
2 months ago
The project is 60% complete. So, the EV would 0.6*$2,456,900 = $1,474,140. And the CV= EV-AC. Therefore, CV= $1,474,140 - $1,525,140= - $51,000.
upvoted 1 times
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farbij
4 years, 9 months ago
cost variance =Earned value minus Actual value (not planned value)
upvoted 1 times
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