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satela [25.4K]
3 years ago
14

You asked one of your team members about the schedule variance (SV) for one of her key deliverables. She mentioned that she is b

ehind schedule but there would not be any cost variance. Which of the following is NOT true in this case
Mathematics
1 answer:
Hoochie [10]3 years ago
6 0

Answer:

Where there is a negative schedule variance (SV), the project is said to be behind schedule

Where there is a negative cost variance (CV) the project is said to be over budget

Step-by-step explanation:

Schedule variance is found by subtracting the cost of work scheduled from the cost of performed work

It is given by;

Schedule variance (SV) = Cost of performed work - Cost of work scheduled

or

Schedule variance (SV) = BCWP - BCWS

Where

BCWP = Budgeted Cost of Work Performed

BCWS = Budgeted Cost of Work Scheduled

Schedule variance (SV) = Earned Value (EV) - Planned Value (PV)

Where there is a negative schedule variance, the project is said to be behind schedule.

Cost variance (CV) is given by;

Cost variance is found by subtracting the actual cost (AC) of a project from the expected cost (EC) of the project.

CV = EV - AC = EC - AC

Where there is a negative cost variance the project is said to be over budget.

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