Another indicator of cost performance is cost variance (CV).If the cumulative earned value is greater than the cumulative actual costs, then
A) the CV is positive.
B) the CV is equal to the TBC.
C) CV cannot be determined with CEV and CAC.
D) the CV is negative.

Question

Quizplus · Accepted Answer

If the cumulative earned value (CEV) is greater than the cumulative actual costs (CAC), it means that the project is performing better than planned, and therefore, the CV is positive. CV measures the difference between earned value and actual cost, indicating whether the project is over or under budget. In this case, since CEV is higher than CAC, the project is under budget, and the CV is positive.

Another Indicator of Cost Performance Is Cost Variance (CV)