PK0-005 Project Life Cycle Practice Question
In earned value management, the project has an EV of $50,000, PV of $60,000, and AC of $55,000. What is the cost variance (CV)?
⚠ Common exam trap
PK0-005 often tests formula confusion — candidates mix up CV (EV − AC) with SV (EV − PV), or drop the negative sign, producing the wrong answer.
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
✓
-$5,000
Cost Variance (CV) is calculated as EV − AC. With EV = $50,000 and AC = $55,000, CV = $50,000 − $55,000 = −$5,000, indicating the project is over budget by $5,000.
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
This value equals EV minus PV, the schedule variance, not the cost variance. It is tempting because the numbers are identical in magnitude to the correct CV, but CV requires subtracting AC from EV, giving negative $5,000.
- ✗
$10,000
Why it's wrong here
CV is EV minus AC, giving 50,000 minus 55,000, which is negative $5,000, not positive $10,000. The figure is tempting because it equals the schedule variance (EV minus PV), which measures timing rather than cost performance.
- ✓
-$5,000
Why this is correct
Cost variance is EV minus AC: $50,000 − $55,000 = −$5,000. The negative result satisfies the stem's requirement to quantify cost performance, showing the project has overspent by $5,000 against the work completed. PV is irrelevant here, since CV measures actual cost efficiency, not schedule.
- ✗
$5,000
Why it's wrong here
A $5,000 figure is the schedule variance (EV − PV = −$10,000 is wrong; SV is actually −$10,000, so $5,000 matches nothing here), whereas cost variance requires EV − AC = $50,000 − $55,000 = −$5,000. The positive sign is tempting because AC exceeds EV by exactly $5,000, but CV must be negative when overspent.
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Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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