PK0-005 Tools and Documentation Practice Question
A project has a BAC of $200,000. After three months, the earned value (EV) is $80,000 and the actual cost (AC) is $90,000. What is the cost variance (CV) and what does it indicate?
⚠ Common exam trap
PK0-005 often tests the confusion between Cost Variance and Schedule Variance — candidates see a negative number and reflexively pick 'behind schedule' (Option D) instead of recognizing that CV specifically measures budget performance.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
CV = -$10,000; the project is over budget
Cost Variance is calculated as CV = EV − AC. Here EV = $80,000 and AC = $90,000, so CV = $80,000 − $90,000 = −$10,000. A negative CV means the project has spent more than the value of work completed, i.e., it is over budget. Option A states both the correct value and the correct interpretation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
CV = -$10,000; the project is over budget
Why this is correct
Cost variance is calculated as EV minus AC, giving $80,000 − $90,000 = −$10,000. A negative CV means the project has spent more than the value earned to date, so it is over budget. This directly satisfies the stem's figures and correctly interprets the shortfall.
- ✗
CV = $10,000; the project is ahead of schedule
Why it's wrong here
CV is EV minus AC, giving -$10,000, not $10,000; a negative figure signals overspending, and schedule status comes from SV, not CV. The $10,000 magnitude is tempting because it matches the EV/AC gap, but the sign is inverted and the interpretation belongs to a different metric.
- ✗
CV = $10,000; the project is under budget
Why it's wrong here
CV equals EV minus AC, which is -$10,000 here, so the project is over budget, not under. The $10,000 figure is tempting because it matches the absolute EV/AC difference, but the negative sign is what determines the direction of the variance.
- ✗
CV = -$10,000; the project is behind schedule
Why it's wrong here
CV is EV minus AC, giving $80,000 - $90,000 = -$10,000, which indicates a cost overrun, not a schedule position; schedule status comes from SV. It is tempting because negative variance sounds like delay, but this formula is the correct choice when asked for schedule variance.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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