EVM

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KaurP
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Posts: 94
Joined: Wed Apr 04, 2018 4:08 am

EVM

Postby KaurP Mon Aug 06, 2018 12:08 pm

Hi Manish,

I am not able to sort this out. Can you help?

Your project exceeded costs in the past caused by an underestimation of resource costs in the cost baseline:

PV: $1,200,000, EV: $1,000,000, AC: $1,200,000

You expect the underestimation to influence the future as much as it did in the past. If the value of the remaining work (BAC – EV) is at $1,000,000, what should be your new EAC (estimate at completion)?

o $1,800,000
o $2,000,000
o $2,200,000
o $2,400,000. Correct answer with no explanation.

Thanks!
manishpn
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Posts: 2577
Joined: Sat Jan 04, 2014 3:55 pm

Re: EVM

Postby manishpn Tue Aug 07, 2018 5:32 pm

typical variance
ETC = Work remaining / Cost performance indicator

ETC = (BAC – EV) / CPI
= 1000000/0.833
= 1200000

EAC = AC + EAC
= 120000+120000
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/

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