Question

The enhancement project is complete and you are compiling your final performance report. The budget was 72,000 and your actual costs were 68,000. Which statement is most accurate?

1) Your variance at completion is positive
2) You have a positive cost variance
3) Your estimate at completion is negative
4) Your variance at completion is negative

Answer 1

The most accurate statement is that there is a positive cost variance, as the project's actual costs are lower than the budget by $4,000, indicating under-budget performance.

Step-by-step explanation:

The statement that is most accurate concerning the final performance report of an enhancement project with a budget of $72,000 and actual costs of $68,000 is that You have a positive cost variance. Cost variance is calculated by subtracting the actual costs from the budget at completion. In this case, the cost variance would be $72,000 (budget) - $68,000 (actual costs) = $4,000. As the actual costs are lower than the budget, the variance is positive, indicating that the project is under budget.