Question 49

Project variance (SV) is calculated as Earned Value - Planned Value.

The project variance (SV) is determined by subtracting the Planned Value from the Earned Value, which reflects how much of the planned work has actually been completed at a given point in time.

A) Earned Value - Planned Value

This option is correct as it accurately describes the formula for calculating schedule variance (SV). Schedule variance measures the difference between the work that was planned to be completed by a certain time (Planned Value) and the work that has actually been completed (Earned Value), providing insight into project performance against the schedule.

B) Earned Schedule - Actual Time

This option is incorrect because it refers to a different concept known as Earned Schedule, which is used to assess schedule performance in terms of time rather than value. It does not accurately represent the formula for calculating schedule variance.

C) Planned Value - Earned Value

This option is incorrect as it reverses the correct order of the SV calculation. Subtracting Earned Value from Planned Value would yield a negative value when Earned Value exceeds Planned Value, which does not align with the standard definition of schedule variance.

D) Actual Time - Earned Schedule

This option is incorrect as it combines two unrelated metrics. Actual Time does not directly contribute to the calculation of schedule variance, and Earned Schedule pertains to time performance rather than value performance, making this formula irrelevant for determining SV.

Conclusion

The correct answer, Earned Value - Planned Value, is the definitive method for calculating project variance, as it directly assesses the difference in value between work planned and work completed. All other options either misrepresent the metrics involved or refer to unrelated concepts, solidifying Option A as the only accurate choice.