Homework SourseThe contractor reports a cumulative cost variance CV of 50K
The contractor reports a cumulative cost variance (CV) of $50K and a variance at completion (VAC) of -$20K. What can you conclude from these metrics?
| (A) You must know the percent values to draw conclusions. |
| (B) The contractor is predicting better future cost performance. |
| (C) You cannot draw conclusions based on this type of comparison. |
| (D) The contractor is predicting worse future cost performance. |
Solution
The correct answer is Option D i.e. The contractor is predicting worse future cost performance.
Because the final variance and estimated variance is no where close to each other that the prediction of the contractor the absolutely vague and baseless.
