What do you think on this QS ?

Submitted by ranatungawk on Sun, 03/02/2014 - 14:37
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You know that BAC = 500, PV = 325, AC = 275, and EV = 250 and that you are experiencing typical variances.
What is EAC?

a. 500
b. 250
c. 549.45
d. 525

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abhinavpraneet

Tue, 03/04/2014 - 07:00

Since the question mentions typical variances, it would mean that the EAC would be based on CPI, and not adhere to the original plan. Hence the formula I would go with is EAC=(BAC/CPI).

Therefore EAC=(500/(EV/AC))=(500/(250/275))=550. Answer C is closest, but not the same, which should not be the case in this calculation as it does not have decimals (which can be rounded off).

Abhinav Praneet, PMP

interservicio

Wed, 03/05/2014 - 14:48

Answer C.

For calculations it is best to calculate three decimals, and round them to two.

Then CPI = 250 / 275 = 0,909  --> 0,91

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ranatungawk

Wed, 03/05/2014 - 16:10

According to the Rita's book and sevaral other sources :

1. If no variances from the BAC --- > BAC/CPI

2. If variances is Atypical ---> AC + (BAC-EV)

3. IF variances is Typical ---> AC+(BAC-EV)/CPI

 

I think, the 2nd formula should be selected for this ,,,, correct ?

interservicio

Thu, 03/06/2014 - 08:39

Well not exactly.

IF cost variances had occurred and you expect to keep occurring on the same trend in the future, you have tu use:

EAC = BAC / CPI

If variances occured BUT you don't expect to keep on the futre, you use your second formula EAC = AC + (BAC - EV)

As for the third formula, I think you're referring to this one: EAC = AC + [(BAC - EV) / (SPI*CPI)] which is used for variances to keep on the future and the time constraint is expected to influence the completion of the remaining effort. 

To be honest i don't understand 100% the last one, nor i have been seen it in ANY exercise.

 

philstinnet

Thu, 05/01/2014 - 14:51

The last formula is the same as the first formula. 

EAC = AC + (BAC - EV) / CPI 

When you multiply CPI to AC, it will become EV. This EV will cancel out the EV on the right. The net remaining will be BAC/CPI which is the first formula.

Thanks