ETC

Submitted by vijayavadrevu on Sun, 05/26/2013 - 18:57

 You are working on a 12 month assignment to build a website with 4000 pages for $ 1,000,000. You are supposed to spend $ 250,000 every 3 months. After 6 months, you determine that only $ 400,000 of work is completed and cost incurred is $ 800,000. What is the ETC?


1.    

$ 2,000,000


2.    

$ 1,500,000


3.    

$ 1,000,000


4.    

1,200,000

 

If ETC = EAC - AC formula is used, 

ETC = EAC - AC = AC+BAC-EV-AC = 600000, which is not given in the options

 

If ETC = EAC - AC  = ETC  = (BAC/CPI) - AC is used, 

ETC = ((BAC*AC)/ EV) - AC= 1200,000 which is option 4

 

getting confused as to which formula to be used for EAC. Can someone clarify as to why the first formula above cannot be used?

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y0zh

Sun, 05/26/2013 - 21:10

ETC = EAC-AC: Use formula when no keywords (i.e. typical, atypical orflawed) are given.

•ETC = BAC-EV: Assumption: use formula if current variances are thought to be atypical in the future. •ETC = (BAC-EV) / CPI: Assumption: use formula if current variances are thought to be typical in the future. •ETC = New estimate when it is thought that the original estimate was flawed.

vijayavadrevu

Mon, 05/27/2013 - 02:27

 Thank You @y0zh