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Task 5: Plan and manage budget and resourcesearned value managementEAC calculationcost performanceproject control
PMP · Question 05 · Task 5: Plan and manage budget and resources
A project has the following earned value metrics at the end of Month 8:<br/>- Budget at Completion (BAC): $750,000<br/>- Planned Value (PV): $450,000<br/>- Earned Value (EV): $375,000<br/>- Actual Cost (AC): $420,000<br/><br/>Calculate the Estimate at Completion (EAC) assuming current cost performance will continue for the remainder of the project. Round to the nearest dollar and enter numbers only.
A project has the following earned value metrics at the end of Month 8:<br/>- Budget at Completion (BAC): $750,000<br/>- Planned Value (PV): $450,000<br/>- Earned Value (EV): $375,000<br/>- Actual Cost (AC): $420,000<br/><br/>Calculate the Estimate at Completion (EAC) assuming current cost performance will continue for the remainder of the project. Round to the nearest dollar and enter numbers only.
How to approach this question
Calculate CPI first (EV/AC), then use EAC = BAC/CPI formula. This assumes current cost variance trends will continue.
Full Answer
842857
EAC using CPI assumes current cost performance trends continue. CPI = EV/AC = 375,000/420,000 = 0.8929. EAC = BAC/CPI = 750,000/0.8929 = 842,857.
Common mistakes
Using wrong EAC formula (like EAC = AC + BAC - EV which assumes no future variance), or calculation errors in CPI.
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