Question

In cost control earned value referes to:

a. How much moeny of the budget should have been spent in view of the planed cost of work
b. How much of the budget should have been spent in view of the amount of work performed
c. How much money was actually-spent for work already performed
d. None of the above

Answer 1

In cost control, earned value refers to the amount of budget that should have been spent relative to the work actually performed. It is used in project management to assess performance and project progress.

Step-by-step explanation:

In cost control, earned value refers to how much of the budget should have been spent based on the amount of work actually performed. So, the correct answer to the student's question is: b. How much of the budget should have been spent in view of the amount of work performed.

Earned value management (EVM) is a project management technique that integrates the project scope, cost, and schedule measures to help the project management team assess performance and progress. EVM uses formulas to provide metrics that show variances in a project based on comparisons to the planned amount of work and the actual work completed.

Example: If the planned cost of the work scheduled was $50,000, and the planned cost of the work performed is $45,000, but the actual cost spent is $40,000, then the earned value would be $45,000. This represents the value of work that should have earned according to the plan.