PGMP · Question #39
You are program manager for the HYH Program. Your program governance is requiring you to use earned value management to predict how closely your program is tracking to the cost and schedule…
The correct answer is D. EAC-AC. EAC − AC = ETC (Estimate to Complete), which represents how much MORE money needs to be invested from this point forward to complete the program, based on current performance. EAC (Estimate at Completion) is the total projected cost of the program at completion; subtracting AC…
Question
You are program manager for the HYH Program. Your program governance is requiring you to use earned value management to predict how closely your program is tracking to the cost and schedule baselines and to predict overall program performance. Which earned value management formula can you use to predict how much more will need to be invested in the program based on current program performance?
Options
- AEV/AC
- BEV/PV
- CBAC/CPI
- DEAC-AC
How the community answered
(40 responses)- A3% (1)
- B5% (2)
- C13% (5)
- D80% (32)
Explanation
EAC − AC = ETC (Estimate to Complete), which represents how much MORE money needs to be invested from this point forward to complete the program, based on current performance. EAC (Estimate at Completion) is the total projected cost of the program at completion; subtracting AC (what has already been spent) gives the remaining investment needed. Option A (EV/AC) = CPI, the Cost Performance Index - a ratio measuring cost efficiency, not a remaining-cost prediction. Option B (EV/PV) = SPI, the Schedule Performance Index - measuring schedule efficiency. Option C (BAC/CPI) = EAC - the total projected cost at completion, not just the remaining portion. Only EAC − AC directly answers 'how much MORE needs to be invested,' which is the ETC.
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