CAPM (Certified Associate in Project Management) 2026 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 885

What is the formula for calculating cost variance?

CV = EV - AC

The formula for calculating cost variance (CV) is A CV = EV - AC, where EV is Earned Value and AC is Actual Cost. This formula takes into account the difference between the amount of work that was planned (EV) and the actual cost incurred (AC).

Choice B is incorrect because it reverses the order of EV and AC, which would result in a negative cost variance. Choice C is incorrect because it divides EV by AC, which does not accurately represent the difference between the planned and actual costs. Choice D is incorrect because it divides AC by EV, which would also result in a negative cost variance.

Overall, choice A is the correct formula for calculating cost variance because it accurately reflects the difference between the planned and actual costs.

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CV = AC - EV

CV = EV/AC

CV = AC/EV

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