CAPM (Certified Associate in Project Management) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

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

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How is the performance estimate low technique for finding EAC calculated?

EAC = AC + EV/BAC
EAC = BAC/CPI
EAC = AC + (BAC - EV)/CPI
Both B and C are correct

The correct answer is: Both B and C are correct

The correct answer is D. Both option B and option C are correct for calculating the performance estimate low (EAC) technique in project management. Option B (EAC = BAC/CPI) is used when the current cost performance index (CPI) is expected to continue for the remainder of the project. This formula assumes that the project's budget at completion (BAC) will be divided by the cost performance index (CPI) to calculate the estimated cost at completion (EAC). Option C (EAC = AC + (BAC - EV)/CPI) is applied when the assumption is that future cost performance will vary from the original plan. This formula considers the actual costs (AC) incurred to date, the variance between the budget at completion (BAC) and earned value (EV), and the cost performance index (CPI) to estimate the total cost of the project upon completion. Therefore, both options B and C are correct methods for calculating the performance estimate low technique for finding EAC in project management.