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A Project with a total funding of $70,000 finished with a BAC value of $60,000. What term can best describe the difference of $10,000?

 

A. Management Contingency Reserve

B. Cost Variance

C. Schedule Variance

D. Management Overhead

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Question ajoutée par Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date de publication: 2017/01/13
Elke Woofter
par Elke Woofter , Project Assistant , American Technical Associates

B. Cost Variance

see below for the definitions and websites ...

 

What is a cost variance? | AccountingCoach

www.accountingcoach.com/blog/what-is-a-cost-variance 

"Generally a cost variance is the difference between a cost's actual amount and its budgeted or planned amount. For example, if a company had actual repairs ..."

 

Earned Value Management Cost Variance - Tutorialspoint

https://www.tutorialspoint.com/earn_value_management/cost_variance.htm

"Cost Variance (CV) is a very important factor to measure project performance. CV indicates how much over - or under-budget the project is. ... Cost Variance % indicates how much over - or under-budget the project is in terms of percentage."

sodiq lawal
par sodiq lawal , Quality Inspector , JEFFERSON CONTRACTING CO.

it is Management Reserve. It can't be cost variance because the total funding wasn't based on estimated cost but on planned budget.

Syed Muhammad Talal Hussain
par Syed Muhammad Talal Hussain , Consultant , HUMAN RESOURCE SOLUTIONS INTERNATIONAL.

A. Management Contingency Reserve

Abdul Rehman
par Abdul Rehman , Electrical Engineer , Tamdeed Projects

Thank you for the invitation. My answer is B

DR MD ANWAR HOSSAIN
par DR MD ANWAR HOSSAIN , Moderator , bayt.com

Thank you for invitation. I seem option-B. Cost Variance.

Md Fazlur Rahman
par Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

Cost Variance..............................

hisham abu dagga
par hisham abu dagga , Project Manager / مدير مشاريع , مؤسسة عبدالكريم العواض للمقاولات

 

Thank you for the invitation

option B

 

With the greetings and appreciation of the information

Krishna   KHASANIS  PMP
par Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

Mr.Muhammad , you could be right in general but here in this case it is Positive Cost Variance ; but it is Cost Variance nevertheless and thanks for the invitation.

Muhammad Farooq
par Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

I think option A because

The difference between the Cost Baseline and Funding requirement at Project completion is

Management Contingency Reserve. BAC represents the revised Cost baseline for the project. So

Management Contingency Reserve is true.

يوسف دمدوم
par يوسف دمدوم , مهندس و مسير , مقاولة اشغال البناء

Think you for the invitation

 the answer is B: Cost  Variance

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