The project manager is reviewing the earned value of work completed compared to the planned value and is representing it in a dollar figure.
This type of analysis is an example of which of the following?
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A. B. C. D.C.
The analysis the project manager is performing is an example of a cost performance analysis. The analysis compares the planned value (PV), which is the amount of work scheduled to be completed at a certain point in time, with the earned value (EV), which is the actual value of the work that has been completed at that same point in time. The difference between PV and EV is known as the schedule variance (SV), which represents how far ahead or behind schedule the project is.
The project manager is also representing this information in a dollar figure, which means they are calculating the cost of the work that has been completed. This is known as the actual cost (AC) of the work. The difference between the AC and the EV is known as the cost variance (CV), which represents the difference between the actual cost of the work and the planned cost of the work.
The cost performance index (CPI) is a measure of the cost efficiency of the project, which is calculated by dividing the EV by the AC. A CPI of 1 means the project is on budget, while a CPI greater than 1 means the project is under budget, and a CPI less than 1 means the project is over budget.
Risk mitigation is the process of identifying, assessing, and prioritizing risks, and then taking actions to reduce or eliminate the likelihood or impact of those risks.
Therefore, the correct answer to this question is D. Cost variance.