PMI-SP Exam - Topic 1 Question 24 Discussion

According to the question, the schedule variance (SV) of the project is 25, which is a

positive value. The positive SV depicts that the project is

ahead of the planned schedule.

What is SV?

Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that

the schedule is ahead

or behind what was planned for this period in time. The schedule variance is calculated based on the

following formula:

SV = Earned Value (EV) - Planned Value (PV)

If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater

than 0 shows that the

project is ahead of the planned schedule. A value of 0 indicates that the project is right on target.

Answer option A is incorrect. The negative SV means that project is behind the schedule.

Answer option C is incorrect. The zero SV means that project is right on target.

Answer option B is incorrect. This result can be drawn by looking at the cost variance (CV) of the

project.

What is CV?

Cost variance (CV) is a measure of cost performance on a project. The variance notifies if costs are

higher than budgeted

or lower than budgeted. The cost variance is calculated based on the following formula:

CV = Earned Value (EV) - Actual Cost (AC)

A positive value means that spending is less than budgeted, whereas a negative value indicates that

costs are higher than

originally planned for the project.