You have been assigned a project that is underway due to the resignation of the

Question

You have been assigned a project that is underway due to the resignation of the original project manager. Like the good PM that you are, you immediately seek out the earned value data for the project to check its financial health. In surveying the work status, you determine that the project's work has earned two-thirds completion of the original project budget, $96,000. You also know that at this point in time, the project was supposed to have completed $60,000 worth of work, but has in fact spent $72,000. What are the EV, PV, and AC for this project? (in that order)

Explanation / Answer

Answer : As given in the question The project's work has earned 2-3rds of the completion of the original project budget of $96000 .

Therefore the Earned Value (EV) = (2/3)* $96000 = $64000

The question says that the project was supposed to be completed $60000 . This is the planned value

Therefore Planned Value (PV) = $60000

Actual cost(AC) =$72000

Additionally SV(Schedule Variance)= EV -PV = $4000

CV(Cost Variance) = EV-AC =-$8000

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