As part of a mid-project evaluation, your project sponsor has asked you to provide a forecast of total project cost. You should calculate the forecast using which of the following methods? ISEB…

Question

Options

• ABAC
• BEAC
• CETC
• DWBS

• A
  5% (1)
• B
  76% (16)
• C
  14% (3)
• D
  5% (1)

Explanation

EAC (Estimate at Completion) is the correct forecasting metric because it represents the expected total cost of the project upon completion, combining actual costs spent to date with a revised estimate for remaining work - exactly what a sponsor needs for a mid-project cost forecast.

Why the others are wrong:

• A. BAC (Budget at Completion) is the original approved total budget, not a forecast - it doesn't account for how the project is actually performing.
• C. ETC (Estimate to Complete) only covers the remaining work cost from the current point forward, not the total project cost.
• D. WBS (Work Breakdown Structure) is a planning tool that decomposes project scope into deliverables - it's not a cost forecasting metric at all.

Memory tip: Think of the acronyms as a timeline - BAC is where you planned to end up, ETC is what's left to spend, and EAC is the full picture ("A to C" = start to finish). When a sponsor asks "what will this project cost in total?", you need the full picture: EAC.

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