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Calculate VAC

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Sud
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Calculate VAC

Postby Sud Mon Aug 18, 2014 6:44 am

BAC=500, PV=325, AC=275, CPI=0.9, EV=250
You are using actual cost to date and assuming ETC using budgeted rate. VAC tell you which of the following-
25
-52
52
25

?
signor_rk
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Re: Calculate VAC

Postby signor_rk Mon Aug 18, 2014 7:20 am

Here , EAC = AC + BAC - EV
= 275 + 500 - 250
= 525
So , VAC = BAC - EAC
= 500 -525
= - 25
Option # A , i.e, -25
Regards ,

Ranjit
namita
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Re: Calculate VAC

Postby namita Mon Aug 18, 2014 12:53 pm

Sud, what is the source of this question

I suppose here the second line is defining a bit on using BAC-EV as ETC...So explanation given below should be fine
spepe
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Re: Calculate VAC

Postby spepe Wed Aug 20, 2014 1:53 pm

i do not understand, how the second phrase is leading to current variances that are thought to be atypical of the future.
If you can please detail ...
namita
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Re: Calculate VAC

Postby namita Thu Aug 21, 2014 6:57 am

Here, rather than giving scenario, its openly mentioned to use Budgeted rate for ETC

You are using actual cost to date and assuming ETC using budgeted rate
spepe
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Joined: Thu Feb 27, 2014 6:35 pm

Re: Calculate VAC

Postby spepe Thu Aug 21, 2014 7:36 am

thanks for the answer Namita.

For me it is not very clear what " Budgeted rate" means .... i'am not familiar with this terminology.
To my mind it was " a rate that was budgeted from the begging,that has no variances from start to end.

Can u please re-direct me to some material, where i can read more about this ?

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