Program Management Professional (PgMP) — Question 90

If a program has a budget of completion of $550,000, is 25 percent complete, and has spent $135,000 what is the cost variance (CV)?

Answer options

• A. .99
• B. -$2,500
• C. $2,500
• D. 1.02

Correct answer: C

Explanation

The cost variance (CV) is calculated using the formula CV = EV - AC. Here, the earned value (EV) is 25% of $550,000, which equals $137,500. The actual cost (AC) is $135,000, so CV = $137,500 - $135,000 = $2,500. Options A, B, and D provide incorrect values for CV based on this calculation.