Free PMI Project Management Professional (PMP) Practice Question
A project has a Budget at Completion (BAC) of $500,000. The current Actual Cost (AC) is $300,000, and the Cost Performance Index (CPI) is 0.75. What is the Estimate to Complete (ETC)?
The Estimate to Complete (ETC) can be calculated using the formula: ETC = EAC - AC. First, determine the Estimate at Completion (EAC) using the formula EAC = BAC / CPI. In this case, EAC = $500,000 / 0.75, which equals $666,667. Then, calculate the ETC by subtracting the Actual Cost (AC) from the EAC: ETC = $666,667 - $300,000, which equals $366,667. Some of the wrong answers might consider different interpretations or incorrect calculations of BAC, CPI, or EAC, leading to incorrect ETC values.
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What is the Budget at Completion (BAC)?
Can you explain the Cost Performance Index (CPI)?
What does Estimate to Complete (ETC) mean in project management?
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