According to PMI - how do I calculate the BAC?

Submitted by FloridaPM on Mon, 01/23/2012 - 19:10

How do I calculate the BAC?


Is there a formula?


 


Most articles I read say that its the total estimate for the project.


 


So I dont know if this is project estimate + contingency reserve + management reserve. Or project estimate + contingency reserve. Or just the project estimate.


 


Does anyone know?

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ahujar

Mon, 01/23/2012 - 19:42

You will calculate BAC based on the information given to you. yes, there are some formulas that you can use to calculate BAC but it depends on the information given to you.


For instance: EAC = AC + (BAC - EV) or VAC = BAC - EAC


also from some situational questions, you might have to calculate the BAC.


For instance You have a project to build a new fence. The fence is four sided. Each side is to take one day to build and is budgeted for $1000 per side. The sides are planned to be completed one after the other. What is the BAC?


Answer: BAC = 1000 + 1000 + 1000 + 1000 = $4000.