PV = $190,000, EV = $150,000, AC = $170,000. What does this indicate about SV and CV?

PV = $190,000, EV = $150,000, AC = $170,000. What does this indicate about SV and CV?

• A. behind schedule, over budget
• B. behind schedule, under budget
• C. advance schedule, over budget
• D. advance schedule, under budget

Answer: (A)

In earned value terms, schedule variance (SV) shows whether the work completed is ahead or behind plan, and cost variance (CV) shows whether spending is under or over budget. SV is calculated as EV minus PV, and CV as EV minus AC. Here, planned value (PV) is 190,000, earned value (EV) is 150,000, and actual cost (AC) is 170,000. SV = 150,000 − 190,000 = −40,000, which is negative, so the project is behind schedule by 40,000 of planned value. CV = 150,000 − 170,000 = −20,000, which is negative, so the project is over budget by 20,000. Therefore, the project is behind schedule and over budget.

In earned value terms, schedule variance (SV) shows whether the work completed is ahead or behind plan, and cost variance (CV) shows whether spending is under or over budget. SV is calculated as EV minus PV, and CV as EV minus AC.

Here, planned value (PV) is 190,000, earned value (EV) is 150,000, and actual cost (AC) is 170,000. SV = 150,000 − 190,000 = −40,000, which is negative, so the project is behind schedule by 40,000 of planned value. CV = 150,000 − 170,000 = −20,000, which is negative, so the project is over budget by 20,000.

Therefore, the project is behind schedule and over budget.