hardMultiple ChoiceObjective-mapped

PK0-005 Practice Question: Refer to the exhibit

Exhibit

Project Status Report - Monthly
Budget:
Planned Value (PV): $120,000
Actual Cost (AC): $130,000
Earned Value (EV): $115,000

Refer to the exhibit. Based on the project status report, what is the cost variance (CV) and what does it indicate?

⚠ Common exam trap

The trap here is that candidates may misread the exhibit or incorrectly compute CV by subtracting EV from AC (AC - EV) instead of EV - AC, leading to a positive value that falsely suggests under budget performance.

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

✓

CV = -$15,000; over budget

The cost variance (CV) is calculated as earned value (EV) minus actual cost (AC). From the exhibit, EV = $25,000 and AC = $40,000, so CV = $25,000 - $40,000 = -$15,000. A negative CV indicates the project is over budget, meaning costs have exceeded the value of work performed.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

✗
CV = -$5,000; over budget
Why it's wrong here
Incorrect calculation.
✓
CV = -$15,000; over budget
Why this is correct
Correct calculation and interpretation.
✗
CV = -$10,000; over budget
Why it's wrong here
Incorrect calculation; uses PV instead of EV.
✗
CV = $5,000; under budget
Why it's wrong here
Incorrect sign and value.

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PK0-005 Practice Question: Refer to the exhibit

Exhibit

Why each option matters

Option-by-option breakdown

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