Practice Quiz

PMI PMP Project Management

Category - Cost Management

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Tom is doing analysis on his project and the result for Schedule Variance has just come up negative. What does this mean for his project?
  1. His project is ahead of schedule.
  2. His project is behind schedule.
  3. His project is under budget.
  4. This is the amount he’s yet to spend.
  5. He should file a change request.
Explanation
Answer: b - A negative result for Schedule Variance indicates his project is behind schedule; conversely, a positive result means his project is ahead of schedule. A positive Cost Variance number would indicate his project is under-budget, while a negative number means its over-budget.

Key Take Away: Don’t cut costs when it comes to project management - for example, when creating the Concorde airplane, technology was not spared, but the project came in over-budget by 1100%. A good project manager adds value by monitoring these metrics carefully and making adjustments.
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