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) = (BAC - EV) / (BAC - AC): work remaining divided by funds remaining against the original budget.

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 (EAC) = (BAC - EV) / (EAC - AC): replaces BAC with EAC in the denominator to measure efficiency needed against the revised estimate.

Question 3

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

Accepted Answer

An external or government/customer organization

Answer

IEAC is prepared by an independent party — typically the customer or government — to validate or challenge the contractor's EAC from an outside perspective.

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 team would need to perform roughly 56% more efficiently than the current CPI to reach BAC, making recovery within original budget highly unrealistic.

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

The composite CPI × SPI formula accounts for both cost and schedule inefficiencies, providing a more realistic forecast when both indices are significantly below 1.0.

EVM Certification Practice Test

EVM Certification Practice Test

EVM Certification Forecasting & Estimates at Completion 2