## Cost Variance :

You, the project manager, estimated the cost of developing an user interface of 15.400 € in total, however it has only been completed three-fifths and the cost incurred is 9.500 €. What is the Cost Variance of the project?

A. +133 €.

B. +213 €.

C. -433 €.

D. -260 €.

PMP Solution 107

Cost variance (CV) is the amount of budget deficit or surplus at a given point in time, expressed as the difference between earned value and the actual cost. It is a measure of cost performance on a project. It is equal to the earned value (EV) minus the actual cost (AC) and Earned value (EV) is a measure of work performed expressed in terms of the budget authorized for that work. It is the budget associated with the authorized work that has been completed. Therefore, in this case EV = 15.400€ x 3/5 = 9240€, and so CV = 9240€ – 9500€ = -260 €. Therefore, right answer is D. [PMBOK 6th edition, Page 262] [Project Cost Management]

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