ExpertHard1 markShort Answer
PMP · Question 07 · Task 5: Plan and manage budget
A project has a Budget at Completion (BAC) of $100,000. The project is currently 40% complete. The Actual Cost (AC) is $45,000. 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 or commas)
A project has a Budget at Completion (BAC) of $100,000. The project is currently 40% complete. The Actual Cost (AC) is $45,000. 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 or commas)
How to approach this question
Calculate EV, then CPI, then EAC using the formula BAC/CPI.
Full Answer
112500
1. EV = 40% * 100,000 = 40,000.<br/>2. CPI = EV / AC = 40,000 / 45,000 = 0.8888...<br/>3. EAC = BAC / CPI = 100,000 / (40,000/45,000) = 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.
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