Question

If the work package in 39 above has an ACWP of $100,000 then ______.

A) Cost variance is $20,000
B) Cost variance is -$20,000
C) The work package is over budget
D) None of the above
E) B and C only

Answer 1

Without the Earned Value (EV) for the work package, the cost variance cannot be calculated and the correct answer to the provided options cannot be determined. Cost variance is found by subtracting the Actual Cost Work Performed (ACWP) from the EV.

Step-by-step explanation:

The question you've asked is related to project cost control in project management. We're looking at a situation with a specific work package cost analysis. The key is to understand the cost variance in this context. Cost variance (CV) is calculated by taking the difference between the Earned Value (EV) and the Actual Cost (ACWP).

However, without additional information regarding the Earned Value (EV) or the Planned Value (PV), we cannot definitively select an answer. If the Earned Value is known and is $120,000, then the Cost Variance would be $120,000 (EV) - $100,000 (ACWP) = $20,000, which indicates that the work package is under budget (positive variance). Conversely, if the Earned Value was $80,000, then the Cost Variance would be $80,000 (EV) - $100,000 (ACWP) = -$20,000, indicating the work package is over budget.

Based on the choices you've provided and the EV information, the correct answer cannot be determined from the given options.