PTA (ceiling prirce)

Submitted by danielkoshy on Fri, 12/27/2013 - 14:20

Hello
I just wanted to confirm that the ceiling price will always be given in the question. I am referring to Rita pg480 question2. IF you notice all the other values like target cost, actual cost etc..(in the table)can be derived from the question itself, I have no clue how to calculate the ceiling price from the question. I am assuming that the ceiling price value will always be given and then we can go ahead and calculate the PTA. Help!

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gaur.ravi2004@g...

Sat, 12/28/2013 - 07:15

it's not always given you will have to calculate generally I would say you need to look at the contract type like in the FPIF the ceiling price is given where if the cost goes above then the higher limit(ceiling limit) it will be beared by Seller ...So generally you need to look at the total cost and then calculate the ceiling price there's one example given in RITA ..have a look at the questions/example again.. 

danielkoshy

Sat, 03/08/2014 - 18:45

Hello gaur

                    Actually the ceiling price will always be given in the question. I asked one of the instructors at Rita. :)

K Daniel PMP

interservicio

Mon, 03/10/2014 - 09:14

Possibly it will always be given.

The only example i can think about that it wont is if they give you all the other variables.

I.e

PTA = [(Celling price - Target price)/Buyers rater] + Target Cost

Therefore

PTA*BuyersRate=(Celling price - Target Price) + TargetCost*BuyersRate

Ceilling Price = PTA*BuyersRate + Target Price -TargetCost*BuyersRate

 

Anyway PMI even avoid the simple equation resolution because there are out of the scope of the exam :)

danielkoshy

Wed, 03/12/2014 - 19:39

Hello interservicio

                               Really, its out of scope of the exam? dont mind me asking but how do you know this?  

interservicio

Thu, 03/13/2014 - 08:56

I mean, i haven't seen in Rita Prep Book, or any of the mock exams any question regarding to calculate the Ceilling Price derived from the other variables.

It's quite easy, because it's a simple equation, but dindt see any question like that.

Anyway that's only my guess.

 

The only questions i saw regarding solving equations were about CV, SV, SPI and that sort; in example:

They give you, EV, ETC and EAC, and ask you for CV:

CV = EV - AC

ETC = EAC - AC --> AC = EAC - ETC

 

CV = EV - (EAC- ETC) --> CV = EV + ETC - EAC