The plan Regarding cost. • Our team has been tasked with planting the trees on the plot of land behind our company's new factory We are were 400 AC 350 300 PV The plan: - 30 batches of 20 trees (600 trees) - 5 batches per day (100 trees) - budgeted cost per tree 2.90$ (2.5$ per baby tree / 0.40$ for the slow release fertiliser) → total budget 1,740$ 250 200 EV K We should have been here 150 100 50 Start 1st day After the first day.. Regarding schedule... • 70 trees were planted (the team hit a patch with stones that had to be removed before the trees 400 could be planted) AC 350 300 PV • Total cost was 350 $ (we had to rent a special machine to help remove the stones which cost 147$ for the day) 250 200 EV K We are here 150 100 50 Simple EVM calculation: - Earned Value 40 trees planted x 2.90$ 203$ Start 1st day Which is where we should have been then - Planned Value 100 trees planned per day x 2.90$ = 290$ - Actual Cost- 40 trees planted x 290$ + 147$ for the machine » 350$ Planiśware Visually. Regarding schedule... 400 400 Actual cost = 350$ AC 350 350 300 - 290$ 300 Planned Value PV 250 250 Earned Value =203$ EV 200 200 150 150 100 100 50 50 Start 1st day Start 1st day Schedule variance in hours
The plan Regarding cost. • Our team has been tasked with planting the trees on the plot of land behind our company's new factory We are were 400 AC 350 300 PV The plan: - 30 batches of 20 trees (600 trees) - 5 batches per day (100 trees) - budgeted cost per tree 2.90$ (2.5$ per baby tree / 0.40$ for the slow release fertiliser) → total budget 1,740$ 250 200 EV K We should have been here 150 100 50 Start 1st day After the first day.. Regarding schedule... • 70 trees were planted (the team hit a patch with stones that had to be removed before the trees 400 could be planted) AC 350 300 PV • Total cost was 350 $ (we had to rent a special machine to help remove the stones which cost 147$ for the day) 250 200 EV K We are here 150 100 50 Simple EVM calculation: - Earned Value 40 trees planted x 2.90$ 203$ Start 1st day Which is where we should have been then - Planned Value 100 trees planned per day x 2.90$ = 290$ - Actual Cost- 40 trees planted x 290$ + 147$ for the machine » 350$ Planiśware Visually. Regarding schedule... 400 400 Actual cost = 350$ AC 350 350 300 - 290$ 300 Planned Value PV 250 250 Earned Value =203$ EV 200 200 150 150 100 100 50 50 Start 1st day Start 1st day Schedule variance in hours
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The plan
Regarding cost..
• Our team has been tasked with planting the trees on
the plot of land behind our company's new factory
We are here
400
AC
350
300
PV
The plan:
- 30 batches of 20 trees (600 trees)
250
200
EV
K We sould have been here
150
- 5 batches per day (100 trees)
100
50
budgeted cost per tree 2.90$ (2.5$ per baby tree / 0.40$
for the slow release fertiliser)
→ total budget 1,740$
Start
1st day
After the first day..
Regarding schedule..
• 70 trees were planted (the team hit a patch with
stones that had to be removed before the trees
400
could be planted)
AC
350
300
PV
• Total cost was 350 $ (we had to rent a special
machine to help remove the stones which cost 147$
for the day)
250
200
EV
We are here
150
100
50
Simple EVM calculation:
Start
1st day
Earned Value = 70 trees planted × 2.90$ = 203$
Which is where we
should have been then
- Planned Value = 100 trees planned per day x 2.90$ = 290$
%3D
%3D
Actual Cost = 70 trees planted × 2.90$ + 147$ for the machine = 350$ Planišware
Visuall.
Regarding schedule..
400
400
AC
Actual cost = 350$
350
350
300
Planned Value = 290$
300
PV
250
250
Earned Value = 203$
EV
200
200
150
150
100
100
50
50
Start
1st day
Start
1st day
Schedule variance
in hours
Transcribed Image Text:Determine the following:
Cost Variance, Cost Performance Index,
Schedule Variance, Schedule
Performance Index.
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