Financial Proj. Mgmt Question

nveperj04

Business

Asked: Apr 24th, 2013

Question Description

Project X is to produce 200 units and is scheduled to
take five weeks. Each unit is planned to cost $90. Below is the data for the
project at the end of week three:

- At the end of week three, assuming a linear production rate, 120 were planned to be produced

- Actual project status, at the end of week three was that only 100 units had been produced

- The financial manager reported that the business had actually spent $7,500 on the project at the end
of week three.

Required: Using the above information (and stating any assumptions you make), answer the following
questions:

i. What is the cost variance? Is the project ahead or behind budget?

ii. What is the schedule variance? Is the project ahead or behind schedule?

iii. What is the cost performance index? Is the project performing better or worse than planned?

iv. What is the schedule performance index? Is the project performing better or worse than planned?

v. What is your total estimate of the project cost at completion?

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