CAPM Practice: Determine how to document project controls of predictive, plan-based projects
Question 13 of 85 in Determine how to document project controls of predictive, plan-based projects
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Correct answer: The expected total cost of the project based on current performance
Explanation
EAC forecasts the total final cost of the project, incorporating actual costs to date (AC) plus the expected cost of remaining work (ETC). When calculated as EAC = BAC/CPI, it assumes the current cost performance rate will continue for the remainder of the project, giving a performance-adjusted forecast of total project cost.
**Why not A:** The cost of work completed to date describes Actual Cost (AC), not EAC. AC is a historical measure of what has been spent, while EAC is a forward-looking forecast of total project cost at completion.
**Why not C:** The remaining budget available describes Estimate to Complete (ETC) or the difference between BAC and AC. EAC represents the total expected project cost, not just what remains. EAC includes both actual costs already incurred and estimated remaining costs.
**Why not D:** The original approved project budget describes Budget at Completion (BAC). EAC is a performance-adjusted forecast that may differ significantly from BAC based on current cost performance. BAC is the original plan; EAC is the current forecast.
Key Concept
This question covers Determine how to document project controls of predictive, plan-based projects under Determine how to document project controls of predictive, plan-based projects (Predictive, Plan-Based Methodologies).
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