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.
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)- A92% (22)
- B4% (1)
- C4% (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.
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.
BAC (Budget at Completion) is the original planned total budget and does not account for actual cost performance or variances encountered during execution.
TCPI (To-Complete Performance Index) measures the required cost efficiency needed to meet a budget goal, not the estimated final cost.
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
Community Discussion
No community discussion yet for this question.