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Tom is program manager for his organization.

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Tom is program manager for his organization. His program is scheduled to last ten months and has a cost estimate for the program of $550,000. It is now month nine and Tom reports that he actually has a cost variance of a positive $56,000. While Tom is pleased, the new management is not. Why is a positive cost variance not necessarily good news?

A.

A poor cost estimate prevented the organization from adding things to the program scope.

B.

Tom has overestimated the cost of the program.

C.

A poor cost estimate could affect the organization's decisions to invest the funds elsewhere .

D.

Tom has forgot to include deliverables in the program.

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