A project manager receives the following information on his project: PV = 4,500, AC =4,000, EV = 5,000. How well is the project doing in terms of budget?
A) Right on budget
B) 1,000 under budget
C) 1,000 over budget
D) 500 under budget
E) 500 over budget

Question

Quizplus · Accepted Answer

The project is 1,000 under budget, which is determined by calculating the Cost Variance (CV) = EV - AC = 5,000 - 4,000 = 1,000. This positive variance indicates the project is under budget.

A Project Manager Receives the Following Information on His Project