CAPM · Question #486
If the estimate at completion (EAC) is 25, and the budget at completion (BAC) is 17, what is the variance at completion (VAC)?
The correct answer is A. -8. VAC (Variance at Completion) is calculated as BAC minus EAC. A negative result indicates the project is expected to finish over budget.
Question
Options
- A-8
- B1.4
- C425
- D8
How the community answered
(26 responses)- A85% (22)
- B4% (1)
- C8% (2)
- D4% (1)
Why each option
VAC (Variance at Completion) is calculated as BAC minus EAC. A negative result indicates the project is expected to finish over budget.
VAC = BAC - EAC = 17 - 25 = -8. The negative value signals a cost overrun, meaning the project is projected to spend 8 units more than originally budgeted. This is a standard earned value management formula.
1.4 approximates the Cost Performance Index (CPI = EV/AC), which measures cost efficiency, not variance at completion.
425 does not correspond to any recognized earned value management formula applied to these inputs.
8 is the absolute magnitude of the difference but omits the negative sign; since EAC exceeds BAC, the variance must be negative to correctly indicate overrun.
Concept tested: Earned value management - Variance at Completion formula
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
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