Question

If BAC is $ 85,000 , Duration is 75 days, PV is $ 21,000, AC is $ 20,000 , and % Complete is 27 % , what is the state of the project?

a. Under budget, behind schedule
b. Over budget, ahead of sthedule
c. Under budget, ahead of schedule
d. Over budget, behind schedule

Answer 1

The project is under budget, as the Earned Value ($22,950) is greater than the Actual Cost ($20,000), and behind schedule, because the Earned Value is less than the Planned Value ($21,000).

Step-by-step explanation:

The student wants to know the state of a project with the following parameters:

• Budget at Completion (BAC) is $85,000
• Duration is 75 days
• Planned Value (PV) is $21,000
• Actual Cost (AC) is $20,000
• Percent Complete is 27%

To assess the state of the project, we need to evaluate the project performance based on the given figures. The Earned Value (EV) can be calculated by taking percentage completion multiplied by BAC, which is 27% of $85,000, resulting in an EV of $22,950. When comparing the EV to AC and PV, we find:

• EV > AC, which suggests that the project is under budget because the value earned ($22,950) is greater than the actual cost ($20,000).
• EV < PV, which suggests that the project is behind schedule because the value earned ($22,950) is less than the planned value at this point in time ($21,000).

Therefore, the state of the project is under budget, behind schedule.