Which of the following analyses should a project manager use to determine problem areas for corrective action planning? (Select two.)
A. Planned value
B. Schedule variance
C. Acceptable variance
D. Cost variance
E. Earned value
Which of the following analyses should a project manager use to determine problem areas for corrective action planning?
This type of analysis is an example of cost variance. It measures the value of the work completed at the measurement date against the actual cost.
Answer B is incorrect. Schedule variance compares an activity’s actual progress to date to the estimated progress and is represented in terms of cost.
Planned Value The planned value (PV) is the cost of work that has been authorized and budgeted for a specific schedule activity or WBS component (such as a work package) during a given time period or phase.
Actual Cost Actual cost (AC) is the actual cost of completing the work component in a given time period. Actual costs might include direct and indirect costs but must correspond to what was budgeted for the activity. For example, if the budgeted amount did not include indirect costs, do not include them here.
Earned Value Earned value (EV) is the value of the work completed to date as it compares to the budgeted amount (PV) for that period. EV is typically expressed as a percentage of the work completed compared to the budget. For example, if our budgeted amount is $1,000 and you have completed 30 percent of the work so far, your EV is $300. EV cannot exceed the total project budget, but it may exceed the PV for a work component or period of performance if the team is ahead of schedule because they completed work planned for a future period
during the measurement period.