PMI Project Management Professional Practice Question

The correct answer is $20,000. The Variance at Completion (VAC) is calculated using the formula VAC = BAC - EAC. In this case, VAC = $500,000 - $480,000 = $20,000. A positive VAC indicates that the project is expected to come in under budget. This calculation helps project managers understand the projected financial performance of the project at completion, allowing them to make informed decisions about resource allocation and project strategy. It's important to note that while $20,000 is the correct numerical answer, in practice, it's often expressed with a '+' sign to clearly indicate a favorable variance.