ExpertMedium1 markMultiple Choice
PMP · Question 107 · Task 5: Plan and manage budget and resources
A project manager is leading a project to build a new bridge. The project is using a predictive lifecycle. The PM wants to ensure that the project is on budget. The PM calculates the Estimate at Completion (EAC). The EAC is $1.2M. The BAC is $1M. What does this mean?
A project manager is leading a project to build a new bridge. The project is using a predictive lifecycle. The PM wants to ensure that the project is on budget. The PM calculates the Estimate at Completion (EAC). The EAC is $1.2M. The BAC is $1M. What does this mean?
Answer options:
A.
The project will finish under budget.
B.
The project is projected to finish over budget by $200k.
C.
The project is ahead of schedule.
D.
The project is finished.
How to approach this question
EAC > BAC = Bad.
Full Answer
B.The project is projected to finish over budget by $200k.✓ Correct
Task 5 (Budget). EAC is the forecast. If it's higher than the budget (BAC), you have a variance at completion (VAC).
Common mistakes
Confusing EAC (Forecast) with AC (Spent so far).
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