Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion.

PV = $23,000EV = $20,000AC = $25,000BAC = $120,000What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?

The computations are as follows

Explanation:

The computations are as follows

Cost variance (CV) is the earned value minus the actual cost.

In mathematically,

CV = Earned value - actual value

= $20,000 - $25,000

= -$5,000

The Schedule variance (SV) is the earned value minus the planned value.

SV = Earned value - planned value

= $20,000 - $23,000

= -$3,000

Cost performance index (CPI) is the ratio of earned value to actual cost

CPI = Earned value ÷ Actual cost

= $20,000 ÷ $25,000

= 0.8 × 100

= 80%

Schedule performance index (SPI) is the ratio of earned value to planned value

SPI = Earned value ÷  Planned value

= $20,000 ÷ $23,000

= 0.869565 × 100

= 86.957%

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