CAPM Practice: Demonstrate an understanding of a project management plan schedule

The formula EAC = AC + (BAC - EV) calculates EAC by adding actual costs to date (AC) to the remaining budget (BAC - EV). This assumes remaining work will be done at 100% budget efficiency — the original plan for remaining work holds. Compare to EAC = BAC/CPI, which assumes the current performance rate continues. Each formula represents a different assumption about future performance.

**Why not A:** The formula EAC = BAC/CPI assumes future work will continue at the current CPI efficiency rate, not EAC = AC + (BAC - EV). These two EAC formulas represent different assumptions about future performance and should not be confused.

**Why not C:** No standard EAC formula assumes future work will be completed in half the originally estimated time. This is not a recognized assumption in earned value management and does not correspond to any EAC calculation method.

**Why not D:** The formula does not specifically assume only existing resources will be used. The assumption is about cost efficiency rate (budgeted rate), not about which specific resources will perform the work. Resource decisions are separate from the EAC calculation methodology.