EVM Certification Forecasting & Estimates at Completion

Question 1

Which EAC formula assumes all remaining work will be completed at the current Cost Performance Index (CPI)?

Accepted Answer

EAC = BAC / CPI

Answer

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?

Accepted Answer

Expected cost needed to complete all remaining project work

Answer

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)?

Accepted Answer

VAC = BAC - EAC

Answer

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?

Accepted Answer

$250,000

Answer

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?

Accepted Answer

EAC = AC + (BAC - EV)

Answer

EAC = AC + (BAC - EV) adds actual costs to remaining budget at face value, assuming no further efficiency loss — the most optimistic recovery assumption.

EVM Certification Practice Test

EVM Certification Practice Test

EVM Certification Forecasting & Estimates at Completion