Question 501 · 1401 in bank
A project manager is in the middle of an agile project comprised of 100 user stories broken down into five iterations. Each user story is worth US$50. The actual expenditure is US$2,000 and 50 user stories have been delivered. Which statement is true?
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Answer: A
Explanation
A. The project is under budget and on schedule. Here’s why: 50 user stories have been delivered, and each story is worth $50, meaning the earned value (EV) is 50 x $50 = $2,500. The actual expenditure is $2,000, which means the actual cost (AC) is $2,000. Since the EV ($2,500) is greater than the AC ($2,000), the project is under budget. The fact that 50 user stories have been delivered (out of 100, halfway through the project) suggests the project is on schedule if it’s supposed to deliver all 100 stories across 5 iterations. Thus, the project is both under budget and on schedule.
Source: Adapted from community discussion — Ngho