You are the project manager of the GHY Project. This project is scheduled to last for one year and
has a BAC of $4,500,000. You are currently 45 percent complete with this project, though you are

supposed to be at your second milestone which accounts for half of the project completion. There
have been some errors in the project, which has caused you to spend $2,073,654. What is this
project’s schedule variance?

A.
-$48,654

B.
13 percent

C.
-$225,000

D.
0.98

Explanation:
he schedule variance can be found by subtracting the planned value form the earned value. In this
instance, it is $2,025,000 minus $2,250,000. SV = 2,025,000 – 2,250,000 = -225,000 Schedule
variance (SV) is a measure of schedule performance on a project. The variance notifies that the
schedule is ahead or behind what was planned for this period in time. The schedule variance is
calculated based on the following formula: SV = Earned Value (EV) – Planned Value (PV) If the
resulting schedule is negative, it indicates that the project is behind schedule. A value greater than
0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is
right on target.
Answer option A is incorrect. This is the cost variance for the project.
Answer option B is incorrect. 13 percent is not a valid answer.
Answer option D is incorrect. This is not a valid variance for this question; variances are typically
negative numbers.