Confusion in EAC = AC+ ETC formula and question
Submitted by vivek919 on Mon, 11/19/2012 - 06:22
A project was estimated to cost $ 200,000 with a timeline of 10 months. Due to a shipment delay, the schedule was slightly delayed. This was however made up by receiving the first batch of materials for the project by air. The net result was that there was some additional cost in the project. At the end of the second month, the project manager reviews the project and finds that the project is 20% complete and Actual Costs are $ 50,000. The Estimate to complete (ETC) for the project would now be:
$160,000
$210,000
$250,000
$200,000
My answer is D. while Answe description says 160,000 . They are using the formula ETC = BAC - EV . ANy body heard about this formula ? Please let me know your cooments?
Forums:
projmanpro
Mon, 11/19/2012 - 07:35
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A project with an estimate
A project with an estimate cost of $200,000 to complete for 10 months is already 20% completed after 2 months - meaning the condition is OK, no variances (tho the question has a lot of tricks). Those delays mentioned in the question occured before the "second month" and the real scenario actually started "at the end of the second month" where the project is 20% complete in a proportional phase of time.
More explanation in my thread in this link : http://pmptrend.com/index.php/en/forum/5-Project-Management/271-Confusion-in-EAC--AC-ETC-formula-and-question#271
vivek919
Mon, 11/19/2012 - 17:50
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Thank you so much. i got the
Thank you so much. i got the concept