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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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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This PK0-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PK0-005 exam.