You are managing a project with a one-year duration and a budget at completion (BAC) of $ 100,000. After 6 months, the project is 40% complete and the actual cost (AC) is $40,000. Consider a linear project progress inn this case. Which one of the following statements is correct?

Question

BlackTom AI · Accepted Answer

Start by identifying the key values and applying earned value concepts. EV (earned value) = percent complete × BAC = 0.40 × 100,000 = 40,000. AC (actual cost) = 40,000. PV (planned value) at 6 months for a linear, one-year project = (6/12) × BAC = 0.5 × 100,000 = 50,000.

Option a: 'The project is behind the schedule and within the budget.' Here, schedule performance is assessed with Schedule Variance (SV) = EV − PV = 40,000 − 50,000 = −10,000, which indicates the project is behind schedule. Cost performance is assessed with Cost Variance (CV) = EV − AC = 40,000 − 40,000 = 0, which indicates the project is exactly on budget (within budget). Therefore this statement is true.

Option b: 'The project is behind the schedule and over the budget.' The project is indeed behind schedule (SV negative) but is not over budget (CV is zero). Since it is not over budget, this statement is incorrect.

Option c: 'The project is ahead of the schedule and within the budget.' The schedule is not ahead; it is behind (SV negative). Also, while the project is within budget, the premise of ahead of schedule makes this option false.

Option d: 'There is limited information to calculate the earning value of this project.' Earned value (EV) can be calculated as 40,000 from 40% of BAC, and PV is determinable from the linear progress assumption. This statement incorrectly claims information is limited, so it is false.

Option e: 'The project is ahead of the schedule and over the budget.' This contradicts both the calculated SV (behind schedule) and CV (not over budget). Thus, this is incorrect.

You are managing a project with a one-year duration and a budget at completion (BAC) of $ 100,000. After 6 months, the project is 40% complete and the actual cost (AC) is $40,000. Consider a linear project progress inn this case. Which one of the following statements is correct?Single choice

Similar Questions

Why can CPI alone give a misleading picture of project health?

Given CPI < 1 and SPI < 1, and schedule pressure is causing overtime, which EAC formula is MOST realistic?

At Month 4 of a project, PV = $1.2M, EV = $0.95M, and AC = $1.10M. Which interpretation is correct?

Earned Value results show CPI < 1 and SPI < 1. Which conclusion is MOST accurate?

Which of the following are true about Earned Value Management (EVM)? (Select all that apply)

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler