Negative Cost Variance

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Assume you are on a project management team along with four other team members. Your project manager has given the team a report showing negative cost variance and asked the team to meet to discuss the causes and some possible ways to address it.

Before starting, the project manager wants to make sure that everyone has a good understanding of negative cost variance. The project manager turns to you and asks, “What does negative cost variance mean to you?” Provide an answer to that question and then elaborate by explaining how negative cost variance can be addressed to bring the project back on budget. Would you compromise on scope or schedule or possibly something else? Discuss your reasoning and support it with PMIĀ® principles.

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