EVM Certification Forecasting & Estimates at Completion 1 — Questions and Answers
Question 1: Which EAC formula assumes all remaining work will be completed at the current Cost Performance Index (CPI)?
- EAC = AC + (BAC - EV)
- EAC = BAC / CPI (Correct answer)
- EAC = AC + ETC
- EAC = BAC - VAC
Correct answer: EAC = BAC / CPI
EAC = BAC / CPI assumes the current cost efficiency will persist for all remaining work on the project.
Question 2: In EVM terminology, what does ETC (Estimate to Complete) represent?
- Total money spent on the project to date
- Total remaining budget from the original plan
- Expected cost needed to complete all remaining project work (Correct answer)
- Difference between BAC and planned value
Correct answer: Expected cost needed to complete all remaining project work
ETC is the expected future cost to finish all remaining project work from the current status point forward.
Question 3: What is the formula for Variance at Completion (VAC)?
- VAC = EV - AC
- VAC = BAC - EAC (Correct answer)
- VAC = PV - EV
- VAC = BAC - AC
Correct answer: VAC = BAC - EAC
VAC = BAC - EAC; a negative result means the project is forecasted to finish over budget.
Question 4: A project has BAC = $200,000, EV = $80,000, and AC = $100,000. What is the EAC using the CPI-based formula?
- $180,000
- $220,000
- $250,000 (Correct answer)
- $240,000
Correct answer: $250,000
CPI = EV/AC = 80,000/100,000 = 0.80; EAC = BAC/CPI = 200,000/0.80 = $250,000.
Question 5: Which EAC formula is considered the most optimistic because it assumes future work is completed at the original planned rate?
- EAC = BAC / CPI
- EAC = AC + (BAC - EV) (Correct answer)
- EAC = AC + (BAC - EV) / CPI
- EAC = AC + (BAC - EV) / (CPI x SPI)
Correct answer: EAC = AC + (BAC - EV)
EAC = AC + (BAC - EV) adds actual costs to remaining budget at face value, assuming no further efficiency loss — the most optimistic recovery assumption.
Question 6: What does TCPI > 1.0 indicate about a project's future performance requirement?
- The project is currently ahead of schedule
- The project must perform more efficiently than current CPI to meet the cost target (Correct answer)
- The project has already exceeded its total budget
- Future work requires less effort than originally planned
Correct answer: The project must perform more efficiently than current CPI to meet the cost target
TCPI > 1.0 means the team must achieve higher cost efficiency on remaining work than demonstrated to date to reach the target.
Question 7: What is the standard formula for calculating ETC from a known EAC?
- ETC = BAC - EV
- ETC = EAC - EV
- ETC = EAC - AC (Correct answer)
- ETC = BAC - AC
Correct answer: ETC = EAC - AC
ETC = EAC - AC; subtracting costs already incurred (AC) from the total forecast (EAC) gives the remaining cost to finish.
EVM Certification Forecasting & Estimates at Completion 1
Which EAC formula assumes all remaining work will be completed at the current Cost Performance Index (CPI)?