CAPM Practice: Determine how to document project controls of predictive, plan-based projects

VAC = BAC - EAC. When EAC > BAC (the forecasted final cost exceeds the original budget), VAC is negative — indicating the project is expected to finish over budget. A positive VAC would mean the project is expected to finish under budget. VAC gives management a single-number view of the projected budget surplus or deficit at project completion.

**Why not A:** A negative VAC means the project is expected to be over budget, not performing better than planned. A positive VAC (BAC > EAC) would indicate the project is expected to finish under budget, meaning better-than-planned performance.

**Why not B:** There is no indication that the variance analysis needs recalculation. A negative VAC is a valid and common result that provides meaningful information about projected cost performance. It simply means the project's estimated cost at completion exceeds the original budget.

**Why not C:** VAC is a cost metric (Variance at Completion = BAC - EAC), not a schedule metric. It indicates whether the project will finish over or under budget, not whether it will finish ahead of or behind schedule. Schedule forecasting uses different metrics like SPI and schedule variance.