PMP Exam Question 107

Aligned with PMBOK 6th Edition®.

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 €.

February 19, 2020

1 responses on "PMP Exam Question 107"

  1. 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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