Question: While analyzing a project, the project manager calculated the ratio of the Earned Value (EV) to the Actual Costs (AC) and obtained a value of

While analyzing a project, the project manager calculated the ratio of the Earned Value (EV) to the Actual Costs (AC) and obtained a value of 1.2. The project manager decided this was an unfavorable condition for the project and decided to take corrective action. What is your view?

The project manager is correct. The ratio of EV to AC is the Cost Performance Index and a ratio greater than 1 is unfavorable to the project The project manager is not correct. The ratio of EV to AC is the Cost Variance and a ratio greater than 1 is favorable to the project.

The project manager is not correct. The ratio of EV to AC is the Cost Performance Index and a ratio greater than 1 is favorable to the project The project manager is correct. The ratio of EV to AC is the Cost Variance and a ratio greater than 1 is unfavorable to the project.

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