performing earned value technique Question :

This is question no.63 in Lehmann

Question : 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)?

Choice :

A.EaC = BaC - CV
B.EaC = BaC / CPI
D.You can not compute the EaC

Guys need you to clarify me .. and Give me suggestion( in layman technique) that how shall i identify the EAC and ETC related formulas.

admin's picture

Please search before you post. http://pmzilla.com/oliver-lehmann-75-study-question-number-61

This questions has been asked earlier few times on PMZilla :)

Hi,

I am really confused, When and how to use this EAC formulas.

Will you please help me when and how to use EAC formulas
BAC/CPI, AC+ETC, AC+ BAC-EV/CPI , AC + BAC-EV /CPI * SPI

Pls refer PMBOK 5th edition, Page 224, [Project Cost Management]

still iam confused.. can anybody share me some tricks to identify the formulas

Variances are atypical, so you should use formula:

EAC = AC + BAC - EV

you can also write this formula in following way:

EAC = BAC - (EV - AC)

Cost Variance formula is CV = EV - AC

Therefore

EAC = BAC - CV

Answe A is the right one

You can read the following post to get a complete understanding of EAC and ETC

* 5 EAC formulas explained - Estimate At Completion Formula

* 3 ETC Formulas explained - Estimate To Complete Formula

Good luck.

 

Refer to the following blogs

How to Calculate EAC &ETC with Typical SPI &CPI Trends? 

http://www.izenbridge.com/blog/how-to-calculate-eac-etc-with-typical-spi...

How To Calculate EAC & ETC With Typical CPI Trend?

http://www.izenbridge.com/blog/how-to-calculate-eac-etc-with-typical-cpi...

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