Your project status can be presented with the diagram:

What is the status of your project?

Formulas:

EVA Component

Formula

Planned value (PV)

N/A

Earned value (EV)

N/A

Actual cost (AC)

N/A

Budget at completion (BAC)

N/A

Schedule variance (SV)

SV = EV – PV

Cost variance (CV)

CV = EV- AC

Estimated final duration

PlannedProjectDuration / SPI

% Complete

%Complete = (EV/BAC) x 100

Schedule performance index (SPI)

SPI = EV/PV

Cost performance index (CPI)

CPI = EV/AC

Estimate at completion (EAC) – final cost

Future work will be accomplished at the planned rate:

Both CPI and SPI influence the remaining work:

CPI is expected to be the same for the remainder of the project:

EAC = AC + BAC – EV

EAC = AC + [(BAC-EV)/(CPIxSPI)]

EAC = BAC/CPI

Estimate to complete (ETC)

ETC = EAC – AC

Variance at Completion (VAC)

VAC = BAC-EAC

Question

Your project status can be presented with the diagram:

What is the status of your project?

Formulas:

EVA Component

Formula

Planned value (PV)

N/A

Earned value (EV)

N/A

Actual cost (AC)

N/A

Budget at completion (BAC)

N/A

Schedule variance (SV)

SV = EV – PV

Cost variance (CV)

CV = EV- AC

Estimated final duration

PlannedProjectDuration / SPI

% Complete

%Complete = (EV/BAC) x 100

Schedule performance index (SPI)

SPI  = EV/PV

Cost performance index (CPI)

CPI = EV/AC

Estimate at completion (EAC) – final cost

Future work will be accomplished at the planned rate:

Both CPI and SPI influence the remaining work:

CPI is expected to be the same for the remainder of the project:

EAC = AC + BAC – EV

EAC = AC + [(BAC-EV)/(CPIxSPI)]

EAC = BAC/CPI

Estimate to complete (ETC)

ETC = EAC – AC

Variance at Completion (VAC)

VAC = BAC-EAC

BlackTom AI · Accepted Answer

First, restating the scenario helps set the stage: we’re given an Earned Value Management (EVM) framework with how SV and CV are defined, and the question asks which status option best matches the typical interpretation of those variances. Option 1: 'Ahead of schedule, under budget' would imply a positive schedule variance (SV > 0) meaning EV > PV, indicating the earned value is ahead of the planned value. It would also imply a negative cost variance (CV < 0) meaning EV < AC, i.e., actual costs exceed the earned value, which would be inconsistent with 'under budget' (under budget would suggest CV < 0). Since we already have CV defined as EV - AC, under budget requires EV > AC, which would make CV positive, not negative. In short, the combination 'ahead of schedule' with 'under budget' is not logically coherent under the EV formulas provided. Option 2: 'Behind schedule, over budget' corresponds to SV < 0 (EV < PV) and CV > 0 (EV > AC). This is a coherent pair: the project is not keeping pace with the plan (behind schedule) while also spending more than earned value (over budget). The given formulas SV = EV – PV and CV = EV – AC support this pairing: negative SV comes from EV < PV, and positive CV comes from EV > AC. This option aligns with the common interpretation when both cost and schedule performance are unfavorable. Option 3: 'Behind schedule, under budget' would require SV < 0 (EV < PV) and CV < 0 (EV < AC). This describes a scenario where you’re behind schedule but spending less than the earned value, i.e., costs are lower than the work accomplished to date. While possible in some projects, the combination is less typical and would demand EV to be simultaneously less than both PV and AC, which is a particular circumstance and not the default interpretation of the provided formulas. Option 4: 'Ahead of schedule, over budget' would imply SV > 0 (EV > PV) and CV > 0 (EV > AC). Here you are progressing faster than planned (positive schedule variance) but spending more than earned value (cost overrun). This is a valid possible state in some projects, but it is a distinct and less common pattern than the straightforward behind-schedule/over-budget scenario described in Option 2. In summary, evaluating the logical consistency with the definitions SV = EV – PV and CV = EV – AC shows that only Option 2 consistently represents both a negative schedule variance (behind schedule) and a positive cost variance (over budget), i.e., EV is less than PV but greater than AC. The other options either require inconsistent sign combinations or describe less typical/frequent patterns given the standard EVM relationships.

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