Oliver Lehmann ( 75 ) study question number 61
Hi, I am needing assistance on answering #61 from Oliver Lehmann 75 practice questions. I unserstand that there was a variance but I do not "see" how the formula EAC = BAC - CV was derived. Thanks...
You are performing Earned value technique on your project.
After budget approval, an additional and unexpected cost item has been identified, which made the project more expensive some weeks ago. The item has meanwhile been paid by the project team, and it is expected that for the remaining duration of the project, costs will be as budgeted.
In this case, which is the best formula to calculate EaC (Estimate at Completion)?
A. EaC = BaC - CV
B. EaC = BaC / CPI
C. EaC = AC + BtC / CV
D. You can not compute the EaC.
The anaswer is listed as 'A' with the explanation of "PMBOK® Guide 4th Edition, pp 182 (CV = EV - AC) and 184 (EAC = AC + BAC - EV)"