EAC Question

Submitted by stanleyhk on Sun, 09/09/2012 - 14:10

A project was budgeted at $1,000,000. Meanwhile, the project is executed, and 

the following current figures have been assessed:
PV: $500,000
EV: $450,000
AC: $550,000
Assuming that the cost variance was caused by one-time cost drivers, which are 
no more effective, what estimate at completion (EaC) can you derive from these 
figures?
82
a. $900,000
b. $1,000,000
c. $1,100,000
d. $1,222,222
 
Answer is c but why?
 
 
 
 
Forums: 
PMP / CAPM exam Question bank
  • Log in to post comments
  • 1912 reads

aliweb

Sun, 09/09/2012 - 16:31

Answer is C because variance was one-time thing and will not continue. Which means the variance is atypical and when variance is one-time/atypical then you use the following formula to calculate EAC.

EAC = AC + (BAC-EV)