***EAC Calculation ****
Submitted by sam_jain on Mon, 05/07/2012 - 06:21
Answer to the below question is ---> EAC = BAC - CV
I did not understand the above formula , please advise ?
61. | You are performing earned value technique on your project. After budget approval, an additional and unexpected cost item has been identified, which made the project more expensive some weeks ago. The item has meanwhile been paid by the project team, and it is expected that for the remaining duration of the project, costs will be as budgeted. In this case, which is the best formula to calculate EaC (Estimate at Completion)?
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shaikfromriyadh
Mon, 05/07/2012 - 08:24
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EAC calculation
given: EAC = BAC - CV ----- (1)
EAC = BAC -(EV-AC) since CV=EV-AC ---- (2)
The formula (2) can be rewritten as below:
EAC = AC + (BAC- EV)
Hope you understand it now.
sam_jain
Mon, 05/07/2012 - 13:50
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Thanks !!
Got it...
pmalik
Mon, 06/12/2017 - 08:48
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Answer is incorrect.
Answer is incorrect.
There are 5 Estimate At Completion (EAC) Formulas. For a complete explanation including practical & mathematical aspects of EAC with an example -http://www.pmbypm.com/estimate-at-completion-eac-formula/