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PMI Exam PMI-SP Topic 1 Question 72 Discussion

Actual exam question for PMI's PMI-SP exam
Question #: 72
Topic #: 1
[All PMI-SP Questions]

You are the project manager of the NHA Project. This project is expected to last one year with quarterly milestones throughout the year. Your project is supposed to be at the third milestone today, but you are likely to be only 60 percent complete. Your project has a BAC of $745,000 and you have spent $440,000 of the budget-to-date. What is your cost variance for this project?

Show Suggested Answer Hide Answer
Suggested Answer: A

The float for Activity I is three days. The early start for Activity I is Day 17 and the late start for

Activity I is Day 20. Therefore, the difference of

the early start and the late start reveals the float as three days. It is possible, and acceptable, to use

the difference of the early finish and the late finish to find the float, as the value will be the same

amount. Answer options B, D, and C are incorrect. These are not the valid calculation for the total

float.


by Jettie at Mar 07, 2024, 01:01 AM

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Mozell
1 months ago
Wait, so the project is only 60% complete but they've already spent over 50% of the budget? This project manager must be cooking the books or something. I'm going with B) $-111,750 and hoping they get fired.
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Francene
1 months ago
I'm going with D) $7,000. I know it's not the most obvious answer, but maybe the project manager is a wizard and has somehow managed to keep the costs in check despite the schedule slip. I'm feeling lucky with this one!
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Ailene
2 days ago
D) $7,000
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Launa
6 days ago
B) $-111,750
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Detra
9 days ago
A) 11,667
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Matthew
1 months ago
Haha, 'no variance'? That's a good one! With this much of a budget and schedule slip, I'd be surprised if there wasn't a significant cost variance. B) $-111,750 is my pick.
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Fletcher
4 days ago
Let's hope we can get back on track and improve our cost performance in the next milestone.
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Dana
8 days ago
Yeah, it's definitely not a 'no variance' situation with the budget and schedule slip we're facing.
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Tamar
30 days ago
I agree, B) $-111,750 seems like the most likely cost variance given the situation.
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Kristine
2 months ago
C) There is no variance? Are you kidding me? With a 60% completion and $440,000 spent out of a $745,000 budget, there's clearly a cost variance. I'm going with B.
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Lakeesha
21 days ago
Yeah, definitely not C. B makes the most sense with the information given.
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Paz
25 days ago
I think you're right, B seems like the correct answer.
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Ronald
2 months ago
I believe the correct answer is B) $-111,750 because the formula for cost variance is EV - AC, and in this case, it is $745,000 - $440,000.
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Alesia
2 months ago
I agree with Lawrence. The cost variance is negative because we are over budget.
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Dalene
2 months ago
I think the answer is B) $-111,750. The cost variance is the difference between the budgeted cost and the actual cost, and with the given information, that's the correct answer.
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Leoma
17 days ago
D) $7,000
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Weldon
17 days ago
C) There is no variance.
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Marti
28 days ago
B) $-111,750
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Elbert
1 months ago
A) 11,667
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Lawrence
2 months ago
I think the answer is B) $-111,750.
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