Question

Your project has a schedule variance of 2,750 and a cost variance of 7,950. What statement best describes the status of your project?

1) The project is under budget and behind schedule
2) The project is over budget and behind schedule
3) The project is over budget and ahead of schedule
4) The project is under budget and ahead of schedule

Answer 1

The project with a schedule variance of 2,750 and a cost variance of 7,950 is under budget and ahead of schedule.

Step-by-step explanation:

When assessing project performance, schedule variance (SV) and cost variance (CV) are critical metrics used in Earned Value Management (EVM). A positive SV indicates the project is ahead of schedule, while a negative SV suggests it is behind schedule. Similarly, a positive CV means the project is under budget, and a negative CV indicates it is over budget.

In the case presented, with a schedule variance of 2,750 and a cost variance of 7,950, both variances are positive numbers. Hence, the project is ahead of schedule and under budget. Therefore, the correct statement describing the status of the project is: The project is under budget and ahead of schedule.