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Sticky Note
If actual cost is high but earned value is low, the project status is?
  1. Under budget and ahead of schedule
  2. Over budget and behind schedule
  3. On budget and on schedule
  4. Cannot determine
Explanation
  • Actual Cost (AC) measures money spent so far.
  • Earned Value (EV) measures the value of work actually completed.
  • If AC > EV, the project is spending more than the value earned → over budget.

  • If EV is low, less work is completed than planned → behind schedule.

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