Which formula represents Estimated at Completion (EAC) when assuming work will progress at the planned rate?

Which formula represents Estimated at Completion (EAC) when assuming work will progress at the planned rate?

• A. =BAC - BCWP.
• B. = ACWP + BAC - BCWP
• C. = ACWP + (BAC - BCWP).
• D. BAC + BCWP - ACWP.

Answer: (C)

Estimating at completion when work will progress at the planned rate means you carry forward what has already been spent and add the budgeted amount left to finish. The actual cost incurred so far is ACWP. The total budget for the project is BAC, but only BCWP has been earned so far, so the remaining budget to complete is BAC minus BCWP. Putting those together gives EAC = ACWP + (BAC - BCWP). This reflects funding the remaining work at the original plan. Algebraically, this is the same as ACWP + BAC - BCWP, just written without the parentheses.

Estimating at completion when work will progress at the planned rate means you carry forward what has already been spent and add the budgeted amount left to finish. The actual cost incurred so far is ACWP. The total budget for the project is BAC, but only BCWP has been earned so far, so the remaining budget to complete is BAC minus BCWP. Putting those together gives EAC = ACWP + (BAC - BCWP). This reflects funding the remaining work at the original plan. Algebraically, this is the same as ACWP + BAC - BCWP, just written without the parentheses.