If the cost variance is positive and the schedule variance is also positive, then it indicates that …

C. Project is under budget and ahead of schedule

Favorable cost variance means the actual costs incurred is less than the budget, while positive schedule variance would mean that the project is going ahead of schedule/timeline.

NOTE: I am assuming "POSITIVE" is taken literally as favorable. Because unlike in most of managerial accounting books, they would present computation of cost variance as Actual less Budget. If it resulted to positive variance, it means it is unfavorable variance. If this is the case, the answer would be different.

 The Correct answer is 

(A) Project is under budget and behind schedule.

 a) Project is under budget and behind schedule

in my point of view

 c) Project is under budget and ahead of schedule

Answer C is correct

D

It depends on which standards are we following?

- Based on PM standards, answer "C" is correct

- Based on finance/accounting standards, answer "B" is correct

C) Project is under budgeted and ahead of schedule

Negative means: Over budgeted (>) in terms of Cost and behind (<) in terms of Schedule (time,{t})

Positive means: Under budgeted (<) in terms of Cost and ahead (>) in terms of Schedule (time,{t}) 

C)THE PROJECT IS UNDER BUDGET AND AHEAD OF SCHEDULE

C) Project is under budget and ahead of schedule, The Correct Answer.

CORRECT answer is C