CAPM (Certified Associate in Project Management) 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 885

What does a positive Cost Variance (CV) indicate?

Costs are exactly as budgeted

Costs are overrun

Costs are below budget

A positive Cost Variance (CV) indicates that costs are below budget. This means that the project is costing less than what was originally planned, which is generally considered favorable as it can contribute to overall project cost savings. "Costs are exactly as budgeted" (Option A) is not indicative of a positive Cost Variance, as it implies that there is no variance between the planned and actual costs. "Costs are overrun" (Option B) suggests a negative Cost Variance, meaning costs are exceeding the budget. "The project is ahead of schedule" (Option D) refers to Schedule Variance (SV) rather than Cost Variance, so it is not the correct interpretation in this context.

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The project is ahead of schedule

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