What does this chart tell you about contractor management reserve (MR) usage? A
ID: 2757095 • Letter: W
Question
What does this chart tell you about contractor management reserve (MR) usage?
A chart showing monthly management reserve (MR) usage, cost variance (CV), and schedule variance (SV) from May 14 through September 14. Approximate MR values are: May 2.2, June 2.1, July 1.5, August 1.3, September 1.2. Approximate CV values are: May -0.4, June -1.0, July -0.7, August -0.8, September -0.7. Approximate SV values are: May -0.7, June -0.8, July -0.9, August -1.1, September -0.9.
Possible answers
1-It shows that MR use is causing an unfavorable schedule variance.
2-It shows a reduction in MR over time, indicating MR has been used.
3-It shows that MR use is causing favorable cost variances.
4-It shows that MR is increasing over time so the contractor must not be allocating MR to the performance measurement baseline (PMB).
Explanation / Answer
It shows that MR use is causing an unfavorable schedule variance since MR is decreasing it is decreasing the SV also leading to unfavorable scheduled variance.