EVM EVM Forecasting and Completion Estimates 2

Question 1

Which EAC formula is most appropriate when both cost and schedule efficiency are expected to influence remaining work?

Accepted Answer

AC + (BAC - EV) / (CPI × SPI)

Answer

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?

Accepted Answer

$320,000

Answer

ETC at budgeted rate = BAC - EV = $500,000 - $180,000 = $320,000, meaning $320,000 of work remains.

Question 3

A positive VAC indicates:

Accepted Answer

The project is forecast to finish under the original budget

Answer

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:

Accepted Answer

(VAC / BAC) × 100

Answer

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:

Accepted Answer

EV / BAC × 100

Answer

Percent Complete = EV / BAC × 100, representing what portion of the total authorized budget has been earned.

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