CAPM (Certified Associate in Project Management) Practice Exam

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Study for the CAPM Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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How is the original estimate technique for finding EAC calculated?

EAC = AC/(BAC - EV)
EAC = AC + BAC
EAC = BAC/EV
EAC = BAC - AC

The correct answer is: EAC = AC/(BAC - EV)

The original estimate technique for finding EAC is calculated by dividing the actual cost (AC) by the difference between the budget at completion (BAC) and earned value (EV). Option A is the only one that utilizes the concepts of actual cost, budget at completion, and earned value in its calculation. Option B simply adds the actual cost to the budget at completion, which does not accurately reflect the remaining work to be completed. Option C divides the budget at completion by the earned value, which does not consider the actual cost already incurred. Option D subtracts the actual cost from the budget at completion, which does not take into account the earned value or remaining work.