A project has a budget at completion (BAC) of $200,000. At the status date, the earned value (EV) is $80,000, the actual cost (AC) is $100,000, and the planned value (PV) is $90,000. What is the cost variance (CV)?

Question

Accepted Answer

-$20,000. Cost variance CV = EV - AC = $80,000 - $100,000 = -$20,000. The negative value indicates the project is over budget. Choice C (-$10,000) mistakenly uses EV - PV, which is the schedule variance.

A project has a budget at completion (BAC) of $200,000. At the status date, the earned value (EV) is $80,000, the actual cost (AC) is $100,000, and the planned value (PV) is $90,000. What is the cost variance (CV)?

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