Which of the following metrics are used to determine a project's EAC?

The correct answer is C. Planned costs minus actual costs. EAC (Estimate at Completion) represents the remaining estimated budget for a project. It is calculated by subtracting actual costs (what has already been spent) from the planned costs (the original budget). This gives the project manager a forward-looking figure of what remains…

Project management concepts

Question

Exhibit

Options

ABaseline costs plus actual costs
BForecasted costs plus actual costs
CPlanned costs minus actual costs
DForecasted costs minus actual costs

How the community answered

(62 responses)

A
3% (2)
C
95% (59)
D
2% (1)

Explanation

EAC (Estimate at Completion) represents the remaining estimated budget for a project. It is calculated by subtracting actual costs (what has already been spent) from the planned costs (the original budget). This gives the project manager a forward-looking figure of what remains to be spent. Options A and B are incorrect because adding costs together yields a total spent or forecasted total, not a remaining estimate. Option D (forecasted minus actual) could represent a variance but is not the standard EAC formula.

Topics

#earned value management#EAC#cost forecasting#project metrics

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