easyMultiple ChoiceObjective-mapped
PK0-005 A project has a total budget of $100,000 Practice Question
A project has a total budget of $100,000. At a status date, the earned value (EV) is $50,000, the planned value (PV) is $60,000, and the actual cost (AC) is $70,000. What is the cost variance (CV)?
⚠ Common exam trap
Test-takers frequently confuse cost variance (EV - AC) with schedule variance (EV - PV), leading candidates to incorrectly compute -$10,000 or $10,000 instead of the correct -$20,000.
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
✓
-$20,000
Cost variance (CV) is calculated as EV minus AC. With EV = $50,000 and AC = $70,000, CV = $50,000 - $70,000 = -$20,000. A negative CV indicates the project is over budget by $20,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
-$10,000
Why it's wrong here
That would be EV-PV, not CV.
- ✗
$10,000
Why it's wrong here
Incorrect calculation.
- ✓
-$20,000
Why this is correct
CV = EV - AC = 50000 - 70000 = -20000.
- ✗
$20,000
Why it's wrong here
Positive CV would indicate under budget.
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