Which of the following represents the Cost Variance in EVA?

Cost Variance (CV) in the context of Earned Value Analysis (EVA) is a vital metric used to assess the financial performance of a project. It quantifies the difference between the work that has actually been accomplished (Earned Value, EV) and the actual costs incurred (Actual Cost, AC) for that work. This is represented mathematically as:

CV = EV - AC

The significance of CV lies in its ability to indicate whether a project is under or over budget. A positive CV suggests that the project is under budget, while a negative CV indicates that the project has exceeded its budget. This direct correlation with budget performance is what makes Cost Variance a critical tool for project managers in monitoring and controlling costs throughout a project's lifecycle.

Other options, while relevant in the broader context of project management and EVA, do not specifically define Cost Variance. For instance, Schedule Variance (SV) pertains to the project's schedule performance rather than costs, and the Cost Performance Index (CPI) is a ratio derived from CV that provides insight into cost efficiency but does not equal CV itself. PCIB, or Performance Cost Index Baseline, concerns budget metrics that also do not correspond to the definition of Cost Variance. Thus, the