EVM Certification Forecasting & Estimates at Completion 2

Question 1

What is the TCPI formula when using the original BAC as the cost target?

Accepted Answer

TCPI = (BAC - EV) / (BAC - AC)

Answer

TCPI = (BAC - AC) / (BAC - EV)

Answer

TCPI = (EAC - EV) / (EAC - AC)

Answer

TCPI = EV / BAC

Question 2

What is the TCPI formula when using the contractor's current EAC as the cost target?

Accepted Answer

TCPI = (BAC - EV) / (EAC - AC)

Answer

TCPI = (BAC - EV) / (BAC - AC)

Answer

TCPI = EV / AC

Answer

TCPI = (EAC - AC) / (BAC - EV)

Question 3

An Independent Estimate at Completion (IEAC) is typically prepared by which party?

Accepted Answer

An external or government/customer organization

Answer

The project manager using internal performance data

Answer

The cost control team during monthly reporting

Answer

The scheduling team during an IBR

Question 4

If TCPI based on BAC = 1.25 while current CPI = 0.80, what does this gap indicate?

Accepted Answer

Completing within BAC is highly unlikely without a significant efficiency improvement

Answer

The project can still meet BAC with its current performance level

Answer

The team needs only a slight adjustment to hit the budget target

Answer

The schedule will recover automatically as CPI improves

Question 5

Which EAC formula is most appropriate when both cost and schedule variances are significant and both efficiencies must be considered?

Accepted Answer

EAC = AC + (BAC - EV) / (CPI x SPI)

Answer

EAC = BAC / CPI

Answer

EAC = AC + (BAC - EV)

Answer

EAC = AC + (BAC - EV) / CPI

Question 6

A project has BAC = $500,000 and EAC = $575,000. What is the VAC, and what does it mean?

Accepted Answer

-$75,000, meaning the project is forecasted to overrun by $75,000

Answer

+$75,000, meaning the project will finish under budget

Answer

$575,000, representing the revised total forecast

Answer

-$500,000, representing the total budget consumed

Question 7

Under ANSI/EIA-748 standards, which statement about EAC is correct?

Accepted Answer

EAC represents the contractor's current best estimate of total cost, updated regularly

Answer

EAC must always equal BAC at project initiation

Answer

EAC is only updated at project completion

Answer

EAC cannot exceed BAC without formal customer approval