Use the S-curve where the solid line is actual cost and the dashed line is budgeted cost to choose the best statement.
A) The project never experiences negative variance.
B) With regards to budget, the project starts badly but finishes well
C) With regards to budget, the project starts well but finishes badly.
D) The project is in a constant state of positive variance.

Question

Use the S-curve where the solid line is actual cost and the dashed line is budgeted cost to choose the best statement. 
A) The project never experiences negative variance. 
B) With regards to budget, the project starts badly but finishes well 
C) With regards to budget, the project starts well but finishes badly. 
D) The project is in a constant state of positive variance.

Quizplus · Accepted Answer

The S-curve shows that the actual cost is initially higher than the budgeted cost, indicating a slow start or initial cost overrun. However, as the project progresses, the actual cost decreases and eventually meets the budgeted cost, indicating a strong finish or cost savings towards the end of the project. This aligns with choice B, where the project starts badly but finishes well with regards to budget.

Use the S-Curve Where the Solid Line Is Actual Cost