Cost Management Question

If EV=145, PV=162, AC=138, BAC=200, ETC=62,
what is VAC?


A. 0
B. 7
C. 9.5
D. 62
 

Variance at completion formula is VAC = BAC-EAC


BAC = 200


EAC = BAC/CPI


CPI = EV/AC = 145/138 = 1.05


EAC = 200/1.05 = 190.47


VAC = BAC-EAC


       = 200-190.47 = 9.5


The correct answer is C.


Hope this helps

When ETC and AC are given

do not go for forcasting method

just ADD

EAC = AC + ETC =200 and VAC  will be 0.

 sspawar, thanks a lot, understand now !!

ideally one should no ifits no variance, typical or atypical variance and then one could answer surely else consider what Mr Pawar has said.