Earn value calculation (EAC)

Submitted by henrypmp123 on Sun, 02/10/2013 - 14:36

From online practice question:

Actual cost = $1000, Budget at completion = $800, cost performance index = 0.5,
Earned value = $600, the variance can occur again. The estimate at completion is:
A) $1000
B) $1400
C) $800
D) None of the above

Could anyone help, thanks a lot!

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PMP / CAPM exam Question bank
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daso

Sun, 02/10/2013 - 14:57

Since cost variances will continue: EAC=BAC/CPI=1600

steelproject2012

Mon, 02/11/2013 - 14:56

Actual cost = $1000, Budget at completion = $800, cost performance index = 0.5,
Earned value = $600, the variance can occur again. The estimate at completion is:
A) $1000
B) $1400
C) $800
D) None of the above

Pls I would like to ask other would-be contributors:

(i) what does the term Budget at completin refer to? (BAC?)

(ii) If CPI=0.5, hw come EV=1,000; AC=6,000 as given: CPI=EV/AC = 600/1000= 0.6

 

 

daso

Mon, 02/11/2013 - 16:11

<<what does the term Budget at completin refer to>>

 

please consider reading PMBPOK chapter on EVM

sspawar

Mon, 02/11/2013 - 15:42

 wrong question, 

sunku65

Sat, 06/07/2014 - 08:46

It is a wrong question, thats why select choice D.

signor_rk

Sun, 08/10/2014 - 07:19

What about this case:
EAC= AC + (BAC-EV)/CPI
= 1000 + (800-600)/0.5
= 1000 + 200/0.5
= 1000 + 400
= 1400
So option # (B)