Answered

A project has a baseline budget of $100,000 and a baseline schedule of 40 weeks. The baseline indicates that by the end of week 20, the project is planned to be 50% complete. As of the end of week 20, it is reported that 40% of the project work has been completed at a cost of $60,000. Using the EVM method, BAC = $100,000, SAC = 40 weeks, and % complete = 40%. What are the Earned Value (EV), Cost Performance Index (CPI), and Critical Ratio (CR)?
60000, 0.67, 0.80
40000, 0.67, 0.53
40000, 0.80, 0.67
60000, 0.53, 0.67



Answer :

The difference between a job's standard hours and actual hours is called a time variance. In standard costing, the idea is used to find production process inefficiencies.

40000,0.67,0.53 BAC equals $100,000 at 20 weeks AC equals $60,000 PV equals 50% x $100,000 equals $50,000 EV equals 40% x $100,000 equals $40,000

% Complete = EV ÷ BAC = $40,000 ÷ $100,000 = 40%

% Spent = AC ÷ BAC = $60,000 ÷ $100,000 = 60%

Cost and Timetable Fluctuations:

Time Variance: CV = EV + AC = $40,000 + $60,000 = -$20,000.

SV = EV + PV = $40,000 + $50,000 = -$10,000

TV = SV = PV Rate = -$10,000 = $2,500 per week = -4 weeks Performance Indicators: PV Rate = $100,000 40 weeks = $2,500 per week

CPI = EV AC = $40,000 $60,000 = 0.67.

SPI = EV PV = $40,000 $50,000 = 0.80;

and CR = CPI SPI = 0.67 0.8 = 0.53.

To learn more about Time Variance here

https://brainly.com/question/29097189

#SPJ4

Other Questions