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Calculating Schedule and Cost Variance

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Christopher Tangarife Linden, NJ, United States
I am currently studying for the CAPM and utilizing the PMI® Authorized On-Demand Certified Associate in Project Management (CAPM)® Exam Prep Course. 

In the prep course, specifically Module 8 section Project Controls and Forecasting/Earned Value Management page 7, it says the formula to calculate Schedule Variance is Schedule Variance = Earned Value (EV) - Actual Cost (AC).

While supplementing my study with other resources I see this formula is slightly different and what I see in all other resources is the following formula: Schedule Variance = Earned Value (EV) - Planned Value (PV)

Similarly for cost variance, the prep courses uses Cost Variance = Earned Value (EV) - Planned Value (PV). Other resources use CV = Earned Value (EV) – Actual Cost (AC).

I am currently following the PMI information first, but am curious about what others think is correct.
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Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
Christopher, this is surprising because I've always known SV = EV - PV and CV = EV - AC and I never heard otherwise. In previous versions of PMBOK, it was as is too.

Maybe it is a typo in the Exam Prep Course.

Kiron Bondale: What are your thoughts on this?
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1 reply by Christopher Tangarife
Aug 21, 2024 6:53 PM
Christopher Tangarife
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It is surprising. I default to the material in the prep course but after seeing the other formulas in other resources I figured it doesn’t hurt to reach out and get responses from seasoned professionals!

I just want to make sure I’m studying thoroughly and with the correct information
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Christopher Tangarife Linden, NJ, United States
Aug 21, 2024 4:12 PM
Replying to Rami Kaibni
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Christopher, this is surprising because I've always known SV = EV - PV and CV = EV - AC and I never heard otherwise. In previous versions of PMBOK, it was as is too.

Maybe it is a typo in the Exam Prep Course.

Kiron Bondale: What are your thoughts on this?
It is surprising. I default to the material in the prep course but after seeing the other formulas in other resources I figured it doesn’t hurt to reach out and get responses from seasoned professionals!

I just want to make sure I’m studying thoroughly and with the correct information
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
My recommendation is to use PMI´s Infinity tool or ChatGPT.
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Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
Christopher -

That definitely looks like an error in the courseware so if there is a point of contact for feedback provided, I would suggest submitting that.

I am surprised as such a glaring error should have been picked up as part of normal QC processes before the courseware was released.

Kiron
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Christopher Tangarife Linden, NJ, United States
Just so everyone is aware this was the response I got from the PMI Customer Care team:

"Thank you for contacting the Project Management Institute.

We are happy to assist you with your question about the formula in your course "Cost Variance = Earned Value (EV) - Planned Value (PV)".

We reached out to our eLearning team for clarification. The formula listed within the course was reviewed and is correct as is."
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2 replies by Kiron Bondale and Rami Kaibni
Aug 26, 2024 12:58 PM
Rami Kaibni
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Christopher, this is very odd and I doubt the formula is correct as is in the course. CV is always related to AC!

Recently, in many occasions, you contact customer care and you get 3 different answers from three different agents so I highly recommend you try again.
Aug 26, 2024 3:58 PM
Kiron Bondale
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Christopher -

This speaks volumes about the caliber of folks PMI is hiring in Customer Care! If you contact them again and get the same response, you might direct their attention to the correct formulas in any number of PMI's standards and practice guides.

Kiron
avatar
Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
Aug 26, 2024 12:54 PM
Replying to Christopher Tangarife
...
Just so everyone is aware this was the response I got from the PMI Customer Care team:

"Thank you for contacting the Project Management Institute.

We are happy to assist you with your question about the formula in your course "Cost Variance = Earned Value (EV) - Planned Value (PV)".

We reached out to our eLearning team for clarification. The formula listed within the course was reviewed and is correct as is."
Christopher, this is very odd and I doubt the formula is correct as is in the course. CV is always related to AC!

Recently, in many occasions, you contact customer care and you get 3 different answers from three different agents so I highly recommend you try again.
avatar
Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
Aug 26, 2024 12:54 PM
Replying to Christopher Tangarife
...
Just so everyone is aware this was the response I got from the PMI Customer Care team:

"Thank you for contacting the Project Management Institute.

We are happy to assist you with your question about the formula in your course "Cost Variance = Earned Value (EV) - Planned Value (PV)".

We reached out to our eLearning team for clarification. The formula listed within the course was reviewed and is correct as is."
Christopher -

This speaks volumes about the caliber of folks PMI is hiring in Customer Care! If you contact them again and get the same response, you might direct their attention to the correct formulas in any number of PMI's standards and practice guides.

Kiron

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