Confused - calculate EAC and VAC

Submitted by pmpSGI on Tue, 06/28/2011 - 19:56

Information provided -


BAC=500, ETC=200, PV=500, AC=200, EV=300, CPI=15.


Situation 1. The type of variances that have occured are believed to be atypical, and these variances are expected to continue.


Situation 2. The variances are typical and do not expect these variances to continue.


Calculate VAC for the project in both situations.


Can someone please explain how to calculate VAC in both cases. Appreciate a quick response as I go for test tomorrow. Seems my brain is fried if I can't apply formulae to questions :(


Thanks!

Forums: 
PMP / CAPM exam Question bank
  • Log in to post comments
  • 3140 reads

PMPBOY

Tue, 06/28/2011 - 20:19

Situation 1. The type of variances that have occured are believed to be atypical, so
following formula will apply:


EAC = AC + BAC - EV = 200 + 500 - 300 = 400
Then VAC = BAC - EAC = 500 - 400 = 100


Situation 2. The variances are typical so apply the following formula:


EAC = AC + (BAC - EV) / CPI  = 200 + [(500 - 300) / 15 ] = 200 + 13.34 = 213.34
Then VAC = BAC - EAC = 500 - 213.34  = 286.66

aaron

Tue, 06/28/2011 - 20:31

These are the formulaes you should know about

Forecasting formulas

  • EAC = BAC/CPI (typical or no variances)
  • EAC = AC + ETC (if ETC had to be re-estimated)
  • ETC = BAC - EV (current variances are not typical)
  • ETC = (BAC - EV) / CPI (current variances are typical)