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Given the following information, are project costs ahead or behind what was planned for this duration? EV = 95, PV = 85, AC = 100.

A Behind, because the result of the variance formula is negative.

Cost variance tells you whether costs are above or below what was planned for this period and are calculated by subtracting AC from EV. In this case, the formula looks like this: $95 – $100 = –$5. The resulting number is negative, which means the project costs are lower than what was planned for this time period.

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