Tom is program manager for his organization. His program is scheduled to last ten months and has a cost estimate for the program of $550,000. It is now month nine and Tom reports that he actually has a cost variance of a positive $56,000. While Tom is pleased, the new management is not. Why is a positive cost variance not necessarily good news?
A. A poor cost estimate prevented the organization from adding things to the program scope.
B. Tom has overestimated the cost of the program.
C. A poor cost estimate could affect the organization’s decisions to invest the funds elsewhere .
D. Tom has forgot to include deliverables in the program.
|
Download Printable PDF. VALID exam to help you PASS. |
 |