EVM EVM Forecasting and Completion Estimates 2 — Questions and Answers
Question 1: Which EAC formula is most appropriate when both cost and schedule efficiency are expected to influence remaining work?
- AC + (BAC - EV) / (CPI × SPI) (Correct answer)
- BAC / CPI
- AC + (BAC - EV)
- BAC / SPI
Correct answer: AC + (BAC - EV) / (CPI × SPI)
EAC = AC + (BAC - EV) / (CPI × SPI) is used when both cost and schedule performance factors are expected to continue impacting the remaining work.
Question 2: A project has AC = $200,000, BAC = $500,000, and EV = $180,000. What is the ETC at the budgeted rate?
- $320,000 (Correct answer)
- $300,000
- $354,000
- $280,000
Correct answer: $320,000
ETC at budgeted rate = BAC - EV = $500,000 - $180,000 = $320,000, meaning $320,000 of work remains.
Question 3: A positive VAC indicates:
- The project is forecast to finish under the original budget (Correct answer)
- The project is forecast to finish over the original budget
- The project is ahead of schedule
- The project has no cost variance
Correct answer: The project is forecast to finish under the original budget
VAC = BAC - EAC; when BAC > EAC, the project is expected to cost less than budgeted, yielding a positive VAC.
Question 4: The Percent VAC is computed as:
- (VAC / BAC) × 100 (Correct answer)
- (VAC / EAC) × 100
- (VAC / AC) × 100
- (VAC / EV) × 100
Correct answer: (VAC / BAC) × 100
Percent VAC = (VAC / BAC) × 100 normalizes the projected over/under run as a percentage of the total authorized budget.
Question 5: Percent Complete in EVM is typically calculated as:
- EV / BAC × 100 (Correct answer)
- AC / BAC × 100
- EV / PV × 100
- AC / EAC × 100
Correct answer: EV / BAC × 100
Percent Complete = EV / BAC × 100, representing what portion of the total authorized budget has been earned.
Question 6: An ETC based on a new independent estimate means:
- The original estimate is disregarded and a fresh estimate replaces it (Correct answer)
- The ETC equals BAC minus EV
- The ETC equals BAC divided by CPI
- The ETC equals current AC divided by percent complete
Correct answer: The original estimate is disregarded and a fresh estimate replaces it
When the original estimate is deemed fundamentally flawed, a new independent re-estimate is used for ETC, ignoring the original budgets.
EVM EVM Forecasting and Completion Estimates 2
Which EAC formula is most appropriate when both cost and schedule efficiency are expected to influence remaining work?