Earned value for a Project
You are the project manager of the XVG Project. Your project has a budget of $267,000 and was expected to last two years. You have completed the project, but it took you 24 months to complete the project work. Your actual costs for the project came in at $289,987. What is the earned value for this project?
A. $267,000
B. $289,987
C. -$22,987
D. $.174
Solution
The earned value can be found by multiplying the percent complete times the budget at completion. This question is somewhat tricky in the sense that project in the question is already completed. Because this project is 100 percent complete, the earned value is $267,000. Hence answer option A is correct.
What is Earned Value?
Earned Value (EV) also known as Budgeted cost of work performed (BCWP) is the value of completed work. It is the budgeted amount for the work actually completed on the schedule activity during a given time period.
Answer option B is incorrect. The $289,987 represents the actual costs of the project.
Answer option C is incorrect. -$22,987 is the variance at completion (VAC) for this project. As VAC is a negative number, it shows that the current cost rate is greater than the budgeted cost, and the project will complete over budget.
Answer option D is incorrect. The $.174 is not a valid earned value amount.
