Question

__ is the difference between the budget cost of work performed (PV) and the budgeted cost of work scheduled (EV).

a) Cost Variance (CV)
b) Schedule Variance (SV)
c) Cost Performance Index (CPI)
d) Schedule Performance Index (SPI)

Answer 1

Schedule Variance (SV) is the correct answer, which represents the difference between the budgeted cost of work scheduled (PV) and the actual cost of work performed (EV) in project management.

Step-by-step explanation:

The difference between the budgeted cost of work scheduled (PV) and the actual cost of work performed (EV) is known as the Schedule Variance (SV). Therefore, the correct answer is b) Schedule Variance (SV).

Schedule Variance is a part of Earned Value Management (EVM), a project management technique that integrates scope, time, and cost data. Given the metric's importance in assessing project performance, understanding it is crucial for project managers. A positive SV indicates that the project is ahead of schedule, while a negative SV means the project is behind schedule.