Asked by Future- Success on Apr 25, 2024
Verified
At the end of three months, the cost factors in A&B's healthcare project are as follows: Earned value = $17,000, Actual cost = $18,200. What is the cost variance CV) and cost performance index CPI) for the project?
A) $+1,200; 1.07
B) $-1,200; 0.93
C) $-1,200; 1.07
D) $+35,200; 0.93
E) $+35,200; 1.07
Cost Variance
The difference between the budgeted or estimated cost of a project and the actual cost incurred.
Cost Performance Index
A measure in project management that calculates the efficiency of budget utilization by dividing the earned value by the actual costs.
- Learn about the basic theories and applications of Earned Value Management (EVM) for evaluating the progress of projects.
Verified Answer
PP
Pooja Prajapat8 days ago
Final Answer :
B
Explanation :
CV = Earned Value - Actual Cost
CV = $17,000 - $18,200
CV = -$1,200
CPI = Earned Value / Actual Cost
CPI = $17,000 / $18,200
CPI = 0.93
Therefore, the correct answer is B, as it matches both the CV and CPI calculated above.
CV = $17,000 - $18,200
CV = -$1,200
CPI = Earned Value / Actual Cost
CPI = $17,000 / $18,200
CPI = 0.93
Therefore, the correct answer is B, as it matches both the CV and CPI calculated above.
Learning Objectives
- Learn about the basic theories and applications of Earned Value Management (EVM) for evaluating the progress of projects.
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