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PK0-004 · Question #86

Which of the following measurements would give the project manager the BEST estimate of the total cost of an active project?

The correct answer is A. EAC. EAC (Estimate at Completion) is the earned value metric that provides the best forecast of the total cost of a project based on current performance.

Project management concepts

Question

Which of the following measurements would give the project manager the BEST estimate of the total cost of an active project?

Options

  • AEAC
  • BBAC
  • CTCPI
  • DETC

How the community answered

(24 responses)
  • A
    92% (22)
  • B
    4% (1)
  • C
    4% (1)

Why each option

EAC (Estimate at Completion) is the earned value metric that provides the best forecast of the total cost of a project based on current performance.

AEACCorrect

EAC represents the expected total cost of completing the project, calculated using actual costs to date plus a revised estimate for remaining work. Unlike BAC, which is a static planned value, EAC dynamically reflects current performance trends, making it the most accurate total cost estimate for an active project. It incorporates real spending data, giving the project manager a realistic financial forecast.

BBAC

BAC (Budget at Completion) is the original planned total budget and does not account for actual cost performance or variances encountered during execution.

CTCPI

TCPI (To-Complete Performance Index) measures the required cost efficiency needed to meet a budget goal, not the estimated final cost.

DETC

ETC (Estimate to Complete) represents only the remaining cost to finish the project, not the total project cost from start to finish.

Concept tested: Earned value management - Estimate at Completion (EAC)

Source: https://www.pmi.org/learning/library/estimate-at-completion-project-management-9993

Topics

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

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