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If the cost variance is positive and the schedule variance is also positive, then it indicates that …

<p>       a) Project is under budget and behind schedule</p> <p>       b)   Project is over budget and behind schedule</p> <p>       c) Project is under budget and ahead of schedule</p> <p>     d) Project is over budget and ahead of schedule</p>

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Question added by Rifat Qumar , Assistant Front Office Manager , Pearl Park Hotel
Date Posted: 2014/12/15
Lesley Lanag CMA CPA
by Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)

C. Project is under budget and ahead of schedule

Favorable cost variance means the actual costs incurred is less than the budget, while positive schedule variance would mean that the project is going ahead of schedule/timeline.

NOTE: I am assuming "POSITIVE" is taken literally as favorable. Because unlike in most of managerial accounting books, they would present computation of cost variance as Actual less Budget. If it resulted to positive variance, it means it is unfavorable variance. If this is the case, the answer would be different.

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

 The Correct answer is 

(A) Project is under budget and behind schedule.

Basit Ali
by Basit Ali , Director of Engineering , Laverda Suites & Villas / Blue Bay Resorts

 a) Project is under budget and behind schedule

MALIIK SOHAIL ABBAS
by MALIIK SOHAIL ABBAS , ACCOUNTS MANAGER , AL RAWDAH GREEN SWEET WATER

in my point of view

 c) Project is under budget and ahead of schedule

Alaa Gharieb Ahmed Ahmed Abou-Eita
by Alaa Gharieb Ahmed Ahmed Abou-Eita , Finance & Administrative Manager , Arab Media Investments Company

D

It depends on which standards are we following?

- Based on PM standards, answer "C" is correct

- Based on finance/accounting standards, answer "B" is correct

Khurrum Iqbal
by Khurrum Iqbal , Accountant , Akun Logistic Services

C) Project is under budgeted and ahead of schedule

 

Negative means: Over budgeted (>) in terms of Cost and behind (<) in terms of Schedule (time,{t})

Positive means: Under budgeted (<) in terms of Cost and ahead (>) in terms of Schedule (time,{t}) 

C)THE PROJECT IS UNDER BUDGET AND AHEAD OF SCHEDULE

Abdallah Abu Zeyad CMA
by Abdallah Abu Zeyad CMA , Finance Account Manager , Toyota - Abdul Latif Jameel Motors - KSA

C) Project is under budget and ahead of schedule, The Correct Answer.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

CORRECT answer is C 

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