【Daily Question】Question from Issue 20150929
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This post was last edited by yuchenchf on 2015-10-12 at 15:48. Reward for participation: 2 wealth points. Reward for correct answer: 9 wealth. In a steel door and window installation project, by the end of the second month, the budgeted cost for the work completed was 400,000 yuan, while the actual cost for the work completed was 450,000 yuan. Therefore, the cost control effectiveness of this project is ( ). A. The cost variance is –50,000 yuan; the project’s operations exceed the budget. B. The cost variance is 50,000 yuan; the project’s operations result in savings. C. The cost variance is 50,000 yuan; the project’s operations exceed the budget. D. The cost variance is –50,000 yuan; the project’s operations result in savings. Answer: A. [Production and Management Division] Seeking moderators and technical discussants to join
The answer is: A has a cost variance of -50,000 yuan, as the project’s operations exceeded the budget
In a steel door and window installation project, by the end of the second month, the budgeted cost for the work completed was 400,000 yuan, while the actual cost for the work completed was 450,000 yuan. Therefore, the cost control effectiveness of this project is (A).
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In a steel door and window installation project, by the end of the second month, the budgeted cost for the work completed was 400,000 yuan, while the actual cost for the work completed was 450,000 yuan. Therefore, the cost control effectiveness of this project is (C).
C. The cost variance is 50,000 yuan; the project’s operation exceeds the budget
Cost variance (CV) = Budgeted cost of work performed (BCWP) – Actual cost of work performed (ACWP). When the cost variance (CV) is negative, it indicates that the project’s expenses are higher than the budgeted amount； When the cost variance (CV) is positive, it indicates that the project was carried out at a lower cost, with the actual expenses not exceeding the budgeted amount
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In a steel door and window installation project, by the end of the second month, the budgeted cost for the work completed was 400,000 yuan, while the actual cost for that work was 450,000 yuan. Therefore, the cost control outcome for this project is (C: The cost variance is 50,000 yuan, meaning the project’s expenses exceeded the budget).
In a steel door and window installation project, by the end of the second month, the budgeted cost for the work completed was 400,000 yuan, while the actual cost for the work completed was 450,000 yuan. Therefore, the cost control effectiveness of this project is ( ). C. The cost variance is 50,000 yuan; the project’s operation exceeds the budget