A project manager is reviewing project performance. Which of the following would be the BEST indicator of the total project cost?

The correct answer is B. EAC. EAC (Estimate at Completion) is the forecasted total cost of the project upon completion, making it the best single indicator of what the project will cost in its entirety. AC (Actual Cost) only reflects what has been spent to date - a partial picture. CPI (Cost Performance…

Project management concepts

Question

Options

AAC
BEAC
CCPI
DETC

How the community answered

(34 responses)

A
3% (1)
B
88% (30)
C
6% (2)
D
3% (1)

Explanation

EAC (Estimate at Completion) is the forecasted total cost of the project upon completion, making it the best single indicator of what the project will cost in its entirety. AC (Actual Cost) only reflects what has been spent to date - a partial picture. CPI (Cost Performance Index) is an efficiency ratio (Earned Value / Actual Cost) that shows cost performance but not total cost. ETC (Estimate to Complete) is only the remaining cost from the current point forward. EAC combines past actuals with projected future spend, giving the most complete view of total project cost.

Topics

#EVM#EAC#cost management#project performance

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