What Is the Cost Variance of Project Makeready Based on the Data

question 107

Multiple Choice

What is the cost variance of Project Makeready based on the data in the earned value table shown below? $$\begin{array} { | l | l | l | l | l | l | l | l | l | l | } \hline \text { Activity } & 7 & 14 & 21 & 28 & 35 & 42 & 49 & \text { Plan } & \% / 1 \text { Complete } \\\hline \text { Install fixtures } & 325 & 250 & & & & & & 575 & 100 \% \\\hline \text { Refinish floors } & & 550 & 85 & & & & & 635 & 100 \% \\\hline \text { Replace doors } & & & 350 & 275 & & & & 625 & 100 \% \\\hline \text { Completetiling } & & & & 1,200 & 565 & & & 1,765 & 80 \% \\\hline \text { Install back door } & & & & & 875 & 225 & & 1,100&70 \% \\\hline \text { Landscaping } & & & & & & 200 & 350 & 550 & 25 \% \\\hline \text { Monthly Plan } & 325 & 800 & 435 & 1,475 & 1,440 & 425 & 350 & 5,250 & \\\hline \text { Monthly Act } & 550 & 550 & 550 & 1,100 & 1,650 & 550 & 1,100 & & \\\hline\end{array}$$

• A)-$1,896
• B)-$1,096
• C)-$800
• D)-$406

Explain the significance and procedure of risk analysis in project management.

Understand the analytical approach to determining probabilities of project completion times.

Know how to use tools such as the Correlation Matrix, Bootstrap tool, and Tornado Charts in Crystal Ball for enhanced analysis.

Understand the implications and methodology of Monte Carlo and Latin Hypercube sampling techniques.

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Definitions:

Goods Sold

Represents the total quantity of goods that have been sold to customers during a specific accounting period.

Cost Accounting Systems

Systems that measure, record, and report product costs.

Product Costs

The expenses directly associated with creating a product, including materials, labor, and manufacturing overhead.

Job Order Cost System

A type of cost accounting system that provides for a separate record of the cost of each particular quantity of product that passes through the factory.