Which of the following formulas would help assess project performance against budgeted expectations?

The selected formula provides a valuable assessment of how a project is performing in relation to its budgeted costs. By using the formula (([Actual Money Spent] - [Expected Rate]) / [Expected Rate] * 100), you are calculating the variance between the actual amount spent and the expected budgeted rate, expressed as a percentage of the expected budget. This percentage indicates whether the project is over or under budget, which is crucial for project management.

When the outcome of this formula is positive, it signifies that the actual spending exceeds the budgeted expectation, which can inform project managers to take corrective actions. Conversely, a negative output indicates that the project is under budget, allowing managers to reflect on potential savings or reallocations.

Using this formula helps organizations to make data-driven decisions regarding resource allocation, budgeting adjustments, and overall project performance analysis. It centers on the relationship between actual costs and the budgeted figures, making it an essential tool for effective financial oversight in project management.