EAC formula-- AC+(BAC-EV)

Submitted by abdsal on Thu, 05/02/2013 - 05:54

 

Dear all,

Can you please explain the definition for the EAC formula:

 

"When the current cost performance is atypical for future project work and the future cost performace is expected to be in line with the original estimate"

 

Forums: 
General Discussion
  • Log in to post comments
  • 667 reads

ostralek

Thu, 05/02/2013 - 11:46

 Abdsal, 

You can access all the PMP forumlas at Mister Exam (url = http://www.misterexam.com/pmp/pmp-formula) 

Let me make it easy for you and all. In the exam it will be mentioned accordingly and you have to pick the clue and use the appropriate formula.

 

Estimate At Completion (EAC)

EAC=AC+(BAC-EV)

            (CPI*SPI)

 Used when both Cost & Schedule performance are considered.

 

Estimate At Completion (EAC)

EAC=AC+BAC-EV

If project is A-Typical, Whatever has happened, Project will be on Budget.

 

Estimate At Completion (EAC)

EAC=AC+ETC

In case of Re-baseling

 

Estimate At Completion (EAC)

EAC=BAC

          SPI

If Schedule Variance continues

 

Estimate At Completion (EAC)

EAC=BAC

          CPI

If Cost Variance continues

 

pmpnewster

Thu, 05/02/2013 - 15:03

 

In the first EAC formula, you seem to have inadvertently included AC in the numerator. AC should be a separate term and not in the numerator.

 

Regards.

 

 

ostralek

Fri, 05/03/2013 - 07:55

 Thanks for pointing that out, PMPNewster! 

abdsal

Fri, 05/03/2013 - 07:41

 dear ostralek

 

thanks!!!