EAC question

Submitted by working_hard on Tue, 08/23/2011 - 03:00

I understand that we should this formula to calculate EAC when variances are typical


EAC = AC + [(BAC-EV) / CPI]


When should we use the following formula?


 EAC = AC + [ (BAC-EV) / (CPI * SPI) ]


Thanks in advance.

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PMP / CAPM exam Question bank
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admin

Tue, 08/23/2011 - 07:16

Very good question, The 2nd formula will be used when the cost and schedule performance is not equal to 1 and the same performance ( good or bad ) is expected to continue for the rest of the project.

Also read this page for more clarity http://blog.tapuniversity.com/2009/08/26/estimate-at-completion-%E2%80%9...