Guide on Estimate at Completion (EAC)

Estimate at Completion (EAC):
It is a prediction of the total cost of a project or a task at the end when all the work has been completed. It's a technique of earned value management, a project management technique for estimating how a project is performing.
Importance of Estimate at Completion (EAC):
EAC is important as it gives the project team a clear indication of the anticipated final cost of the project. This allows project managers and sponsors alike, to make informed decisions regarding the project and its budget. It also aids in analyzing the cost performance of the project and the efficiency of the cost management processes implemented.
How EAC works:
EAC is calculated using the formula: EAC = AC + ETC, where AC is the Actual Cost and ETC is the Estimate To Completion.
It's a forecast of future project cost performance based on both past performance and estimated future performance.
Answering Questions on EAC in an Exam:
To calculate EAC in an exam, you'll need the following: the actual costs of tasks completed (AC), the budgeted cost of work scheduled (BCWS), and the budgeted cost of work performed (BCWP). The formula to find the EAC = AC + [(BAC - EV) / CPI].
Exam Tips:
- Understand the concept and importance of EAC.
- Remember the formula of EAC = AC + ETC or EAC = AC + [(BAC - EV) / CPI] based on available data.
- Practice EAC calculations using a variety of data sets.
- Remember that EAC is primarily an estimation, and it may change as the project progresses.