When Examining a Project Budget, What Is a Cost Variance

question 62

Multiple Choice

When examining a project budget, what is a cost variance?

• A)The budgeted cost of work performed (BCWP) during a specific time period
• B)The actual cost of work performed (ACWP) during a specific time period
• C)The difference between budgeted cost of work performed and actual cost of that work when it is performed (BCWP-ACWP)
• D)The average of the budgeted cost of work performed and actual cost of work performed
• E)None of these

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Definitions:

Socially Optimal

A condition or outcome that is most efficient and beneficial for society as a whole, often considered in economic policies and strategies.

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A sector comprising companies that grow, manufacture, and sell tobacco products.

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The market price at which the quantity of goods supplied equals the quantity of goods demanded, leading to market stability.

Positive Externality

A benefit enjoyed by a third-party as a result of an economic transaction they are not directly involved in.