A project manager is reviewing the project's performance and needs to calculate the Estimate at Completion (EAC). The project has a Budget at Completion (BAC) of $500,000, and the current Cost Performance Index (CPI) is 0.8. Which of the following represents the most likely EAC assuming the current performance trend continues?
The correct answer is $625,000. When calculating the Estimate at Completion (EAC) based on the current performance trend, the formula EAC = BAC / CPI is used. In this case, BAC = $500,000 and CPI = 0.8. Applying the formula: EAC = $500,000 / 0.8 = $625,000. This calculation assumes that the current cost performance will continue for the remainder of the project. It's important to note that this method is one of several ways to calculate EAC, and it's particularly useful when past performance is indicative of future results. The other options are incorrect because they either use the wrong formula or misinterpret the relationship between BAC, CPI, and EAC.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What is the Cost Performance Index (CPI) in project management?
Open an interactive chat with Bash
Are there other methods to calculate Estimate at Completion (EAC)?
Open an interactive chat with Bash
What does Budget at Completion (BAC) represent in project management?
Open an interactive chat with Bash
Project Management Professional
Process
Your Score:
Report Issue
Bash, the Crucial Exams Chat Bot
AI Bot
Loading...
Loading...
Loading...
Pass with Confidence.
Project Management Package
You have hit the limits of our free tier, become a Premium Member today for unlimited access.
Military, Healthcare worker, Gov. employee or Teacher? See if you qualify for a Community Discount.
Monthly
$9.99
$9.99/mo
Billed monthly, Cancel any time.
3 Month Pass
$19.99
$6.66/mo
One time purchase of $19.99, Does not auto-renew.
BEST DEAL
Lifetime Pass
$29.99
One time purchase, Good for life.
What You Get
All Project Management Package plans include the following perks and exams .