hardMultiple ChoiceObjective-mapped
PK0-005 Practice Question: A project has a budget of $500,000 and is 40%…
A project has a budget of $500,000 and is 40% complete. The actual cost incurred is $250,000. What is the cost variance?
⚠ Common exam trap
CompTIA often tests the direction of the variance sign, tricking candidates into thinking a positive variance is always good, but here the actual cost exceeds earned value, so the correct variance is negative.
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
✓
-$50,000
Cost variance (CV) is calculated as Earned Value (EV) minus Actual Cost (AC). EV is 40% of the $500,000 budget, which equals $200,000. AC is $250,000, so CV = $200,000 - $250,000 = -$50,000. A negative CV indicates the project is over budget.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
-$50,000
Why this is correct
Correct. CV = EV - AC = 200k - 250k = -50k.
- ✗
-$20,000
Why it's wrong here
Incorrect calculation.
- ✗
$20,000
Why it's wrong here
Incorrect calculation.
- ✗
$50,000
Why it's wrong here
This would be positive, but actual cost exceeds earned value.
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