Two of your junior project managers in the PMO are having a disagreement about the meaning of earned value...

 The first project manager is arguing that earned value is the dollarized amount of the work actually completed; the second project manager is arguing that the earned value actually represents the amount of money that the work is supposed to cost within a given time frame, and when that work is completed, you have earned that much value. While you are listening to the argument unfold, a stakeholder on their project approaches them and tells both project managers that the original basis of estimate was less accurate than a rough order of magnitude. How does this information mostly likely impact earned value calculations?

a. It makes no difference. They are still tracking work completed and there are dollars associated with the completed work

b. Variances have little meaning when the basis of estimate is flawed or covers too wide a range. Earned value calculations may misrepresent the occurrence of actual variances

c. The only impact may occur when calculating estimate at completion or estimate to completion. Variances may occur up to%

d. You must start at the end of the project and work backwards to derive the correct earned value calculations due to the ranginess of the basis of estimate