English
Menu

Software Development and Project Management

In a project with a budget at completion (BAC) of ¥12 million, the current planned value (PV) is ¥6 million, the earned value (EV) ¥4.8 million and the actual cost (AC) ¥6 million. Assuming the current cost efficiency continues, what is the estimate at completion (EAC)?

  1. A¥13.2 million
  2. B¥15 million
  3. C¥17.25 million
Show answer and explanation

Answer: B. ¥15 million

The cost performance index is CPI = EV ÷ AC = 4.8 ÷ 6 = 0.8, meaning that each yen's worth of budgeted work costs 1.25 yen. If this efficiency continues, EAC = BAC ÷ CPI = 12 ÷ 0.8 = ¥15 million, which is expected to exceed the budget by ¥3 million. ¥13.2 million is AC + (BAC − EV), assuming the remaining work (BAC − EV = ¥7.2 million) proceeds on budget. ¥17.25 million is AC + (BAC − EV) ÷ (CPI × SPI) = 6 + 7.2 ÷ 0.64 (in millions of yen), assuming both the cost and schedule efficiencies affect the remaining work.

  • A. This is AC + (BAC − EV) = 6 + 7.2 (in millions of yen), assuming the remaining work proceeds on budget.
  • B. Correct. EAC = BAC ÷ CPI = 12 ÷ 0.8 = ¥15 million.
  • C. This is AC + (BAC − EV) ÷ (CPI × SPI), assuming that SPI = 0.8 also affects the remaining work.
Practice this topic Back to topic

Related calculators

EVM (Earned Value) CalculatorCalculate SV, CV, SPI, CPI and the estimate at completion (EAC) from PV, EV, AC and the budget at completion, and judge delays and overrunsCritical Path CalculatorCalculate earliest and latest start days, float, the critical path and the total duration from task durations and predecessors, shown in a Gantt chart

Books on Software Development and Project Management Ad

As an Amazon Associate I earn from qualifying purchases.

More Software Development and Project Management questions

  1. In a software project that is behind schedule, the number of developers was increased from 5 to 10. By what factor does the number of communication paths between two people (the number of pairs) increase?
  2. Which project risk response shifts the impact to a third party, for example by taking out insurance against the losses if the risk occurs, or by having a specialist company take on the work under a contract?
  3. Which describes the function point method used to estimate software size?
  4. The SLA for a service specifies a monthly availability of at least 99.95%. A month is taken as 30 days, and planned downtime is included in the calculation. This month the service has already been down for a total of 15 minutes due to failures. How much more downtime is allowed for the rest of this month while still meeting the SLA?
  5. In IT service management, which process mainly aims to investigate the root cause of recurring failures and prevent them from happening again through permanent fixes?