u are managing a project and your project has allocated with a two trained resources which can impact the cost performance index as you have replaced them with four other resources, the cost performance index with after this resource shuffling is 1.25. You know that this is a typical source of variance in project. The project is budgeted at $18,000, out of which $10,000 has been earned back. $8,000 has already been spent. What is the estimate of the cost at completion?

14,000

14,400

16,000

12,000

- Solution

As it is given that variances caused by resource shuffling is typical, formula that can be used to calculate EAC is AC + (BAC –EV)/ CPI (As CPI will be influencing the remaining work). EAC = 8,000 + (18,000 – 10,000) / 1.25 = 14,400

## Is this formula right

### Re: Is this formula right

EAC = AC + ETC

ETC = Budget cost for remaining work should be changed as per the Cost Performance Index

ETC = (BAC – EV) / CPI

EAC = AC + (BAC-EV)/ CPI

ETC = Budget cost for remaining work should be changed as per the Cost Performance Index

ETC = (BAC – EV) / CPI

EAC = AC + (BAC-EV)/ CPI

### Re: Is this formula right

PMbok doesn' have

AC+(BAC-EV)/CPI.

It only says without CPI because the assumption was we will move as planned which means CPI=1

When do we use the formula

AC+(BAC-EV)/CPI.

When CPI is impacted by adding more resources ?

Considering atypical scenario

AC+(BAC-EV)/CPI.

It only says without CPI because the assumption was we will move as planned which means CPI=1

When do we use the formula

AC+(BAC-EV)/CPI.

When CPI is impacted by adding more resources ?

Considering atypical scenario

### Re: Is this formula right

question says its typical source of variance

### Re: Is this formula right

AC = AC + (BAC-EV)/ CPI

This formula is not in PMbok. So I am confused,

They have with CPI and SPI

This formula is not in PMbok. So I am confused,

They have with CPI and SPI

### Re: Is this formula right

yes but use the one i said,

you can use the formula mentioned if AC is not given and variance is typical

you can use the formula mentioned if AC is not given and variance is typical

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