36 variances are calculated by subtracting the actual

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36. Variances are calculated by subtracting the actual cost from _____. a. earned value c. planned value b. schedule vari- ance d. rate of perfor- mance ANS: A Variances are calculated by subtracting the actual cost or planned value from EV or earned value, and indexes are calculated by dividing EV by the actual cost or planned value.
PTS: 1 DIF: Difficulty: Moderate REF: p.293 OBJ: LO: 7-6 NAT: BUSPROG: Analytic TOP: Controlling Costs KEY: Bloom's: Comprehension 37. Cost variance is:
cost. rate of perfor- mance. ANS: B Cost variance (CV) is the earned value minus the actual cost. If cost variance is a negative number, it means that performing the work costs more than planned. If cost variance is a positive number, performing the work costs less than planned. PTS: 1 DIF: Difficulty: Moderate REF: p.293 OBJ: LO: 7-6 NAT: BUSPROG: Analytic TOP: Controlling Costs KEY: Bloom's: Comprehension 38. Schedule variance is:
PTS: 1 DIF: Difficulty: Moderate REF: p.293 OBJ: LO: 7-6 NAT: BUSPROG: Analytic TOP: Controlling Costs KEY: Bloom's: Comprehension 39. The cost performance index (CPI):
PTS: 1 DIF: Difficulty: Moderate REF: p.293 OBJ: LO: 7-6 NAT: BUSPROG: Technology TOP: Controlling Costs KEY: Bloom's: Comprehension 40. Which of the following is true of the schedule performance index (SPI)? a. It can be used to estimate the pro- jected time to complete the project. c. It means that a project is ahead of schedule if SPI is lesser than one or hundred percent. b. It means that a project is behind schedule if an SPI is greater than one. d. It is the ratio of planned value to actual costs. ANS: A The schedule performance index (SPI) is the ratio of earned value to planned value; it can be used to estimate the projected time to complete the project.
PTS: 1 DIF: Difficulty: Moderate REF: p.294 OBJ: LO: 7-6 NAT: BUSPROG: Technology TOP: Controlling Costs KEY: Bloom's: Comprehension

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