EVM EVM Forecasting and Completion Estimates 1

Question 1

What does EAC stand for in EVM?

Accepted Answer

Estimate at Completion

Answer

EAC (Estimate at Completion) is the expected total cost of the project when all work is finished.

Question 2

The most commonly used EAC formula, assuming current CPI will continue, is:

Accepted Answer

BAC / CPI

Answer

EAC = BAC / CPI is the standard formula when assuming the current cost efficiency trend will continue for the remaining work.

Question 3

ETC stands for which EVM term?

Accepted Answer

Estimate to Complete

Answer

ETC (Estimate to Complete) represents the expected cost required to finish all remaining project work.

Question 4

Variance at Completion (VAC) is calculated as:

Accepted Answer

BAC - EAC

Answer

VAC = BAC - EAC; a positive VAC indicates the project will finish under budget, while a negative VAC signals a cost overrun.

Question 5

If BAC = $500,000 and CPI = 0.80, what is the EAC using the CPI-based formula?

Accepted Answer

$625,000

Answer

EAC = BAC / CPI = $500,000 / 0.80 = $625,000, meaning the project is forecast to overrun by $125,000.

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