CompTIA Project+ (PK0-005)Project Life Cycle PhasesHard
A project manager is nearing the end of the execution phase. The team has completed most of the work, but there are still outstanding tasks, and the project is slightly behind schedule. The project manager needs to assess the remaining work and estimate the total budget required to complete the project. Which of the following Earned Value Management (EVM) metrics will help forecast the total project cost at completion?
- ABudget at Completion (BAC)
- BEstimate at Completion (EAC)
- CCost Performance Index (CPI)
- DSchedule Variance (SV)
Show answer & explanationAnswer & explanation
Correct answer: B. Estimate at Completion (EAC)
Estimate at Completion (EAC) is an earned value management forecasting technique that provides the expected total cost of completing all work. It uses current performance data (like CPI) to project the likely final cost, making it ideal for assessing the total budget required to complete the project when there are outstanding tasks and performance deviations.
Why the other options are wrong
- A. BAC is the total planned budget for the project, established at the beginning, not a forecast of the *actual* final cost based on current performance.
- C. CPI indicates cost efficiency to date (EV/AC), but it's a ratio of past performance, not a total forecast of remaining costs.
- D. SV indicates schedule performance to date (EV-PV) but does not forecast total project cost.
Estimate at Completion (EAC)
A forecast of the total cost of a project when all work is completed, based on current project performance.
- Calculated using different formulas depending on assumptions about future performance.
- Compares actual costs to date with estimated costs for remaining work.
- Provides a revised total budget projection.
Memory trick: EAC forecasts the final cost, based on current project pace.