Variance Analysis

Variance analysis in the Control Costs process examines the difference between the performance cost baseline and actual performance. One formula you can use with this technique is called variance at completion (VAC). This calculates the difference between the budget at completion and the estimate at completion. It looks like this:

If the result is a negative number, it means you're not doing as well with costs as you anticipated and that variance exists. Assuming your project performance is improving, as the project progresses, variances will become smaller.

You'll be given some scratch paper when you go into the exam. I recommend that you write these formulas down on a piece of your scratch paper before you start the exam and keep it handy. That way, the formulas are off your mind and you've got them in front of you to reference when you get to the portion of the exam where these questions appear. You might want to use this tip for other items you've memorized as well. If you write them down before you begin, you don't have to jog your memory on every question. If you forget something, leave a blank space where it goes and as soon as you remember it or see a question that reminds you what it is, fill in the blank.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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