hard · Project Management Professional predictive

On the Fenwick Grid modernization project, the project manager is reviewing a cumulative cost S-curve. The chart shows that while the Earned Value (EV) line is rising steadily, the Actual Cost (AC) line has flattened significantly over the last three weeks and is now $240,000 below the EV line.

What is the most likely cause the project manager should investigate?

  1. There is a significant lag in the processing of supplier invoices within the organization's accounting system.
  2. The team has shifted from predictive to adaptive delivery, rendering the cumulative AC line irrelevant to current status.
  3. The project manager has effectively used crashing to shorten the schedule without increasing the total project cost.
  4. The project has achieved a structural efficiency gain that has permanently reduced the burn rate of the execution team.

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