Question

The schedule variance of your project is (27,000), your actual costs are 82,000, the budgeted value of the work is 92,000, and the budget at completion is 125,000. What is the earned value of the project?

1) 55,000
2) 65,000
3) 98,000
4) 43,000

Answer 1

The earned value of the project, based on a schedule variance of (27,000) and a budgeted value of the work at 92,000, is 65,000.

Step-by-step explanation:

The question asks us to calculate the earned value of a project with known schedule variance, actual costs, budgeted value, and budget at completion. Earned Value (EV) is a key component in project cost management and can be calculated using the formula: EV = Budgeted Cost of Work Performed (BCWP). In this case, the schedule variance (SV) is given as (27,000) and the formula for schedule variance is SV = EV - Budgeted Cost of Work Scheduled (BCWS), which can be rearranged to EV = SV + BCWS. Since the budgeted value of the work is 92,000, we can determine the Earned Value by adding the schedule variance to the budgeted value. Therefore, EV = (27,000) + 92,000, resulting in an EV of 65,000.