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PMI-SP Exam - Topic 2 Question 122 Discussion

Amy works as a project manager for Blue Well Inc. She is working on the SDI project, which has a BAC of $2,816,000. She is currently 20 percent complete with this project, though she should be 25 percent complete with the project work. The project has consumed $495,000 of the project budget to date. Management has asked her the project's Estimate To Complete (ETC) based on the current project performance. What is the ETC for this project?
B) $1,979,952
A) $1,312,504
C) $1,541,544
D) $2,474,952

PMI-SP Exam - Topic 2 Question 122 Discussion

Actual exam question for PMI's PMI-SP exam
Question #: 122
Topic #: 2
[All PMI-SP Questions]

Amy works as a project manager for Blue Well Inc. She is working on the SDI project, which has a BAC of $2,816,000. She is currently 20 percent complete with this project, though she should be 25 percent complete with the project work. The project has consumed $495,000 of the project budget to date. Management has asked her the project's Estimate To Complete (ETC) based on the current project performance. What is the ETC for this project?

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Suggested Answer: B

The estimate to complete is about knowing how much more money the project will need to

complete its objectives.

The estimate to complete (ETC) is the expected cost needed to complete all the remaining work for a

scheduled activity, a group of activities,

or the project. ETC helps project managers predict what the final cost of the project will be upon

completion. The formula for the ETC is EAC-

AC. The EAC is BAC/CPI. Here it is,

CPI = EV/AC

= (0.20*2,816,000)/495,000

= 563200/495,000

= 1.1378

EAC = BAC/ CPI

= 2,816,000/1.1378

= 2,474,952 (Approx)

ETC = EAC - AC

= 2,474,952 - 495,000

= 1,979,952

Answer options C and A are incorrect. These are not the valid answers for this question.

Answer option D is incorrect. This is the estimate at completion based on the current project

performance.


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Donte
11 hours ago
I'm a bit unsure about the formula for ETC. Is it just BAC minus EV, or do we need to consider the AC as well?
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Xuan
6 days ago
I remember we practiced a similar question about calculating ETC using the BAC and the actual costs. I think we need to find the EV first, right?
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