When examining a project budget, what is a cost variance?
A)The budgeted cost of work performed (BCWP) during a specific time period
B)The actual cost of work performed (ACWP) during a specific time period
C)The difference between budgeted cost of work performed and actual cost of that work when it is performed (BCWP-ACWP)
D)The average of the budgeted cost of work performed and actual cost of work performed
E)None of these

Question

Quizplus · Accepted Answer

A cost variance is the difference between the budgeted cost of work performed (BCWP) and actual cost of work performed (ACWP) during a specific time period. It is calculated as BCWP-ACWP, and represents whether the project is over or under budget. Therefore, the correct answer is C.

When Examining a Project Budget, What Is a Cost Variance