EAC (estimate at complete) is typically based on actual cost (AC) for work completed plus an ETC (estimate to complete) the remaining work. Which of the following is a valid formula for calculating…

Question

Options

• AEAC = AC + [(BAC-EV) / (Cumulative CPI * Cumulative SPI)]
• BEAC = BAC - AC
• CEAC = 1 - CPI
• DEAC = EV + [1 - (Cumulative CPI * Cumulative SPI) / BAC]

• A
  71% (34)
• B
  17% (8)
• C
  4% (2)
• D
  8% (4)

Explanation

Option A is correct because it follows the standard EAC formula structure - actual cost incurred (AC) plus a recalculated estimate for the remaining work - where the remaining planned value (BAC − EV) is adjusted by both cost efficiency (CPI) and schedule efficiency (SPI), giving a realistic forecast when a project is running behind on both dimensions.

Option B (EAC = BAC − AC) is actually a naive "spend what's left" estimate that ignores earned value entirely and doesn't account for how efficiently work has actually been done.

Option C (EAC = 1 − CPI) is dimensionally nonsensical - CPI is a dimensionless ratio, so subtracting it from 1 yields a ratio, not a currency value; it's not a recognized PM formula.

Option D rearranges valid terms but produces a nonsensical result because it divides the performance index product by BAC (mixing a ratio with a budget value) and adds it to EV, which has no basis in PMBOK methodology.

Memory tip: Think of EAC as "what you've spent + a smarter re-estimate of the rest" - the ETC portion is always (BAC − EV) divided by whatever efficiency factor you trust, and when both time and cost are off, you multiply CPI × SPI as your divisor (option A).

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