Question

2.at week 24 of a project to shoot a television commercial, what should the expenditures be? if the earned value is right on schedule but the actual expenses are $9,000, what are the cost and schedule variances? what are the three indexes, the etc, and the eac?

Answer 1

Step-by-step explanation:

Expenditures: This refers to the amount of money that has been spent on the project up to a particular point in time, such as week 24.

Earned Value: This is the value of the work that has been completed on the project up to a particular point in time, expressed in dollars. It represents the amount of the budget that has been earned by completing work on schedule.

Actual Expenses: This is the actual amount of money that has been spent on the project up to a particular point in time, such as week 24.

Cost Variance (CV): This is the difference between the earned value and the actual expenses. A positive value means that the project is under budget, while a negative value means that the project is over budget.

Schedule Variance (SV): This is the difference between the earned value and the planned value (the budgeted cost of the work scheduled to be completed). A positive value means that the project is ahead of schedule, while a negative value means that the project is behind schedule.

Cost Performance Index (CPI): This is the ratio of earned value to actual expenses. A value greater than 1 means that the project is under budget, while a value less than 1 means that the project is over budget.

Schedule Performance Index (SPI): This is the ratio of earned value to planned value. A value greater than 1 means that the project is ahead of schedule, while a value less than 1 means that the project is behind schedule.

Estimate to Complete (ETC): This is an estimate of the cost of completing the remaining work on the project, based on the performance to date.

Estimate at Completion (EAC): This is an estimate of the total cost of the project, based on the performance to date and the estimate to complete.

Answer 2

Without additional data, we cannot calculate the cost or schedule variances, nor can we determine the three indexes or EAC and ETC for the television commercial project. Generally, cost variance is found by subtracting actual costs from earned value, and schedule variance is the difference between earned value and planned value.

Step-by-step explanation:

Expenditures, Variance, and Indexes in Project Management

At week 24 of a project to shoot a television commercial, the expenditures should represent the budgeted cost for the work scheduled to be performed up to that point. If the earned value (EV) of the project is on schedule, this means that the planned work and associated budget is in line with what has been accomplished thus far.

However, if the actual expenses (AC) are $9,000, we cannot determine the cost and schedule variances or the indexes without additional data such as the Budget at Completion (BAC), the Planned Value (PV), and the earned value numbers. The cost variance (CV) is calculated by subtracting the actual expenses from the earned value (EV-CV), and the schedule variance (SV) is obtained by subtracting the Planned Value from the earned value (EV-PV).

The three indexes are the Cost Performance Index (CPI), Schedule Performance Index (SPI), and the To Complete Performance Index (TCPI). The Estimate to Complete (ETC) is calculated as the remaining budget divided by the CPI. The Estimate at Completion (EAC) is a forecast of the total cost of the project, which can be calculated in various ways depending on the performance and assumptions about the future conditions of the project.