AACE International AACE Certification CCP Question # 6 Topic 1 Discussion

Cost Variance (CV)is an EVM metric that indicates whether the project is under or over budget by comparing the earned value to the actual cost.

Key Points:

CV Formula:

CV = BCWP - ACWP

BCWP = 105,000 work hours

ACWP = 110,000 work hours

Calculation:

CV = 105,000 - 110,000 = -5,000 work hours

Interpretation:

A negative CV indicates that the project is over budget, as more work hours were paid for than were earned.

Conclusion:The correct answer isA. BCWP-ACWP = 105,000-110,000 = -5,000because this calculation accurately reflects the cost variance of the project.