Question

For questions 1 through 5 (worth 1 point each), use the data (In $Millions) below from the latest Integrated Program Management Report (IPMR) from your contractor: BCWS BCWP ACWP BAC EAC 7 6 6 10 10 Calculate the Cost Variance (CV) and the Schedule Variance (SV) then pick the true statement from the answers below: a. The contractor is over budget and ahead of schedule. b. The contractor is on budget and behind schedule c. The contractor is over budget and behind schedule. d. The contractor is under budget and ahead of schedule.

Answer 1

Answer:

Integrated Program Management Report (IPMR)

The true statement from the answers is:

b. The contractor is on budget and behind schedule.

Explanation:

Integrated Program Management Report (IPMR) from your contractor: BCWS  BCWP ACWP  BAC    EAC

7              6          6        10        10

Cost Variance (CV)

= BCWP = ACWP

= 6 - 6 = 0

Schedule Variance (SV)

= BCWS - BCWP

= 7 - 6 = 1

b) The Cost Variance (CV) is the difference between the BCWP and the ACWP.  If ACWP costs are higher than the BCWP costs, the contractor is currently over running cost and the Estimate at Completion (EAC) may be higher than the Budget at Completion (BAC).   The schedule variance is the difference between the BCWS and the BCWP.

c) Abbreviations:

BCWS = Budgeted Cost of Work Scheduled

BCWP = Budgeted Cost of Work Performed

ACWP = Actual Cost of Work Performed

BAC = Budget at Completion

EAC = Estimate at Completion