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Task 5: Plan and manage budget and resourcesearned value managementestimate at completionEACcost forecasting
PMP · Question 55 · Task 5: Plan and manage budget and resources
A project has the following earned value data at month 12:<br/>- Budget at Completion (BAC): $2,000,000<br/>- Earned Value (EV): $1,400,000<br/>- Actual Cost (AC): $1,600,000<br/>- Planned Value (PV): $1,500,000<br/><br/>Calculate the Estimate at Completion (EAC) assuming current performance trends will continue. Round to the nearest dollar and enter numbers only (e.g., 2285714).
A project has the following earned value data at month 12:<br/>- Budget at Completion (BAC): $2,000,000<br/>- Earned Value (EV): $1,400,000<br/>- Actual Cost (AC): $1,600,000<br/>- Planned Value (PV): $1,500,000<br/><br/>Calculate the Estimate at Completion (EAC) assuming current performance trends will continue. Round to the nearest dollar and enter numbers only (e.g., 2285714).
How to approach this question
Calculate EAC using the formula: EAC = BAC / CPI. First calculate CPI = EV / AC, then divide BAC by CPI and round to the nearest dollar.
Full Answer
Estimate at Completion (EAC) projects the total project cost based on current performance. When current trends are expected to continue, EAC = BAC / CPI accounts for ongoing cost efficiency.
Common mistakes
Students sometimes use the wrong EAC formula or make calculation errors when computing CPI first.
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