For Controlling Projects, the Schedule Performance Index (SPI) Equals the Cost

question 29

True/False

For controlling projects, the Schedule Performance Index (SPI) equals the cost of the work that was scheduled to have been completed by a particular date based on the original budget and project plan.

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Definitions:

Fixed Overhead Cost Variance

The difference between the budgeted fixed overhead costs and the actual fixed overhead incurred.

Variance Analysis

The process of examining differences between actual and budgeted/expected financial performance and investigating the causes.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level, providing a more useful tool for performance evaluation.

Standard Costs

Predetermined or estimated costs used to compare with actual costs, serving as a financial management tool for analyzing variances.