Project Management Professional PMP · Free Practice Question Medium
Question 24
You are a project manager for your organization. Your current project has a budget of $1,250,650 and is currently 65 percent done. Due to some errors by the project team, however, you were supposed to 75 percent as of today. In your project, you have spent $847,500 – slightly more than what was planned. Management has asked for to report your cost variance for this project. What’s the best answer?
- A ($34,578)
- B ($53,196)
- C 10 percent of the project budget
- D ($125,065)
Reveal correct answer
Correct answer: A
Explanation
Your cost variance is found by using the formula of Earned Value – Actual Costs. In this scenario, the earned value is $812,923 and the actual costs are $847,500. The other answers are incorrect calculations of the cost variance for this project.Discussion
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