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

Question 72 of 85 in Demonstrate an understanding of a project management plan schedule

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The Estimate to Complete (ETC) in earned value management represents:

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Correct answer: The remaining work expected to be performed from the current date to project completion

Explanation

Estimate to Complete (ETC) is the expected cost to finish all remaining project work from the current point. Combined with Actual Cost (AC), it yields the Estimate at Completion (EAC = AC + ETC). ETC is used to forecast total project cost and is derived either from re-estimating remaining work or by applying the current CPI to remaining work.

**Why not A:** The variance between budget and actual spending at completion describes Variance at Completion (VAC = BAC - EAC), not ETC. VAC measures the expected budget overrun or underrun at project completion, while ETC measures remaining work cost.

**Why not C:** The difference between planned and actual costs to date could describe Cost Variance (CV = EV - AC) or a simple budget comparison. ETC is forward-looking — it estimates the cost of remaining work, not the difference in costs already incurred.

**Why not D:** The total budget for the project describes Budget at Completion (BAC). BAC is the approved total budget, while ETC represents only the estimated cost of the work remaining from the current point forward, which is a subset of the total project cost.

Key Concept

This question covers Demonstrate an understanding of a project management plan schedule under Demonstrate an understanding of a project management plan schedule (Predictive, Plan-Based Methodologies).

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