PMP Certification Practice Test 1

Cost variance = Earned Value (EV) - Actual Cost (AC). Here, Earned Value is uniformly spread over the entire project duration. So earned value at the 6th month = [(Total Cost)/ (Total Project months)] * Months completed, i.e., ($36,000/12)*6 = $ 18,000. Cost Variance = $18,000-$20,000 = -$2,000