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.

Under what condition is the performance estimate high formula most applicable?

The project is on budget and ahead of schedule
The project has no remaining work to be completed
Future variances are not expected to impact the project budget or schedule
The project is over budget and the schedule impacts the work remaining to be completed

The correct answer is: The project is over budget and the schedule impacts the work remaining to be completed

The performance estimate high formula, also known as the Estimate at Completion (EAC) formula, is used to determine the remaining budget and schedule for a project when there have been cost and schedule variances. This means that the project is not going according to plan and there are expected to be additional costs and/or delays. Option D is the correct answer because it specifically mentions the project being over budget and the schedule impacting the remaining work to be completed, which are key factors in using the EAC formula. Option A is not applicable because the project is on budget and ahead of schedule, meaning there are no variances and the project is going as planned. Option B is not applicable because if there is no remaining work to be completed, there would be no need to use the EAC formula. Option C is also not applicable because it mentions that future variances are not expected, meaning that the project is still going according to plan and there is no need to use the EAC formula to adjust the budget and schedule.