Quick Answer
The answer is -$50,000. This cost variance (CV) calculation is derived from the earned value management formula CV = EV minus AC, where EV is the earned value of work performed and AC is the actual cost incurred. Since the project is 40% complete against a $500,000 budget, the EV is $200,000, and with an AC of $250,000, the resulting negative CV of -$50,000 signals the project is over budget. On the CompTIA Project+ PK0-005 exam, this tests your ability to apply earned value formulas to real project data, often appearing in scenario-based questions where you must first compute EV from the percentage complete. A common trap is confusing EV with planned value (PV) or forgetting to multiply the budget by the completion percentage. To remember the formula, think of the mnemonic “CV = EV minus AC: if the answer is negative, your costs are excessive.”
This PK0-005 practice question tests your understanding of project management concepts. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A project has a budget of $500,000 and is 40% complete. The actual cost incurred is $250,000. What is the cost variance?
-$50,000
Correct. CV = EV - AC = 200k - 250k = -50k.
-$20,000
Why wrong: Incorrect calculation.
$20,000
Why wrong: Incorrect calculation.
$50,000
Why wrong: This would be positive, but actual cost exceeds earned value.
Answer choices
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.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
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.
Related concept
Read the scenario before looking for a memorised answer.
-$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.
Common exam traps
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.
Detailed technical explanation
Earned Value Management (EVM) uses CV to measure cost performance against the planned budget. The formula CV = EV - AC is defined in PMI's PMBOK Guide. A negative CV means the project has spent more than the value of work performed, triggering corrective action. Real-world scenarios often involve tracking CV at regular intervals to forecast Estimate at Completion (EAC) using formulas like EAC = BAC / CPI, where CPI = EV / AC.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the PK0-005 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
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FAQ
Project Management Concepts — This question tests Project Management Concepts — Read the scenario before looking for a memorised answer..
The correct answer is: -$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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 2026
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.
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