1.

For A Project With Earned Value (ev) = $300, Actual Cost (ac) = $350 And Planned Value (pv) = $400. The Overall Project Budget Is $1,000. Assume That You Will Continue To Spend At The Same Rate As You Are Currently Spending. What Is The Variance At Completion (vac)?

Answer»

As the project will continue to spend at the same CURRENT rate,

the formula to be used would be:

VAC = BAC – EAC

EAC = BAC/CPI 

CPI = EV/AC

VAC = BAC – BAC/(EV/AC) =$1000 – $1000/($300/$350) = -$167

As the project will continue to spend at the same current rate,

the formula to be used would be:

VAC = BAC – EAC

EAC = BAC/CPI 

CPI = EV/AC

VAC = BAC – BAC/(EV/AC) =$1000 – $1000/($300/$350) = -$167



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