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    PracticePMI PMP®PMI PMP Mini Practice ExamQuestion 007
    Hard1 markShort Answer
    Task 5: Plan and manage budget and resourcesProcessCost ManagementCalculation

    PMP · Question 007 · Task 5: Plan and manage budget and resources

    A project has a Budget at Completion (BAC) of $100,000. The project is currently 40% complete. The Actual Cost (AC) is $45,000 and the Earned Value (EV) is $40,000. The project manager expects the current cost variance to be typical for the remainder of the project. What is the Estimate at Completion (EAC)? (Enter the number only, no currency symbols).

    How to approach this question

    Calculate CPI first, then use the formula EAC = BAC / CPI.

    Full Answer

    112500
    1. Calculate CPI: EV ($40,000) / AC ($45,000) = 0.8888...<br/>2. Calculate EAC: BAC ($100,000) / CPI (0.8888...) = $112,500.<br/>Alternatively: $100,000 * ($45,000 / $40,000) = $112,500.

    Common mistakes

    Using the wrong EAC formula (e.g., AC + BAC - EV) which applies when variance is atypical.
    Question 006All questionsQuestion 008

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