CAPM Practice Exam Question

You are a project manager and you are reviewing the earned value data for your project. You find that the Planned Value (PV) is $50,000, and the Earned Value (EV) is $48,000. What is the Schedule Variance (SV) of the project?

A) -$2,000

B) $2,000

C) $48,000

D) $50,000

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The Best Answer is A.

Here is a detailed Explanation

Conceptual Understanding:

• Earned Value Management (EVM) is a technique used to assess the project's performance by comparing what was planned to be done against what has actually been done.
• Planned Value (PV) is the value of the work that was planned to be completed by a specific time.
• Earned Value (EV) is the value of the work that has actually been completed by a specific time.
• Schedule Variance (SV) is calculated as follows: SV=EV?PV
• Schedule Variance tells us whether we are ahead or behind schedule. A positive SV indicates that we are ahead of schedule, while a negative SV means we are behind schedule.

In this question, you are given:

• Planned Value (PV) = $50,000
• Earned Value (EV) = $48,000

Using the formula for Schedule Variance (SV):

SV=EV?PV

SV = $48,000 - $50,000

SV = -$2,000

Therefore, the Schedule Variance (SV) is -$2,000, which means the project is behind schedule by $2,000.