posted 2¼years ago by Natalie2000
© Copyright: Project Management Professional (PMP) Study Guide by Kim Heldman, Sybex Inc., Alameda, CA, USA, 2002, page 39, question 39
Earned Value Analysis
You know that PV = 475, AC = 430, EV = 480, EAC = 40, and BAC = 525. What is VAC?
A. 440
B. 390
C. 485
D. 435
george (2¼years ago):
PV is planned value, AC is actual cost, EV is earned value.
EAC is estimate at completion (AC at the moment of completion, our estimate, according to current cost performance). EAC = BAC/CPI. Where CPI is current cost performance indicator, equals to AC/EV = 0.9. Looks like EAC given in the example is not correct. EAC now should be 525/0.9 = 584.
BAC is budget at completion (how much we have in cost baseline).
VAC is variance at completion, which is the difference between EAC and BAC. In this example it's 525 minus 40, equals to 485. The answer is C.
But again, I feel that EAC is calculated incorrectly.
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