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If the cost variance is the same as the schedule variance and both numbers are greater than zero, then____________
A. The cost variance is due to the schedule variance
B. The variance is favorable to the project
C. The schedule variance can be easily corrected
D. Labor rates have escalated since the project began
Correct Answer: B
Explanation/Reference:
Explanation:
A positive schedule variance indicates that the project is ahead of schedule. A positive cost variance indicates that the project has incurred less cost than estimated for the work accomplished; therefore, the project is under budget.
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