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Question on Earned Value

Posted: Tue Aug 19, 2014 12:18 pm
by Piyali
"You are managing a project with budget at completion (BAC) $ 80,000. The actual cost to date you have seen is $ 25,000 and earned value is $ 17,000. You calculate estimate to complete (ETC) to $ 75,000 by doing bottom-up sum of all costs. After so many calculations, what is the estimate at completion (EAC) for the project?"

A $ 57,000

B $ 100,000

C $ 60,000

D $ 53,000

Share your opinion......

Re: Question on Earned Value

Posted: Tue Aug 19, 2014 12:43 pm
by signor_rk
hi ,

As the ETC is calculated based on bottom up summation , so we need to apply the following formula for EAC:
EAC = AC + ETC Bottom up
= $ 25 , 000 + $ 75 , 000
= $ 100 , 000
So , Option # B , i.e., $ 100 , 000

Re: Question on Earned Value

Posted: Tue Aug 19, 2014 7:31 pm
by taterarpit
yes...as mentioned by Ranjith...answer is B...

Re: Question on Earned Value

Posted: Fri Aug 22, 2014 5:55 am
by Parul
Thanks for the replies.

Yes Answer is B

Estimate at Completion , i.e. EAC = AC + bottom-up ETC,

EAC = $ 25,000 + $ 75,000 = $ 100,000.