Guide on Estimate to Complete (ETC)

Introduction:
Estimate to Complete (ETC) is a crucial tool used in Project Management which calculates the future cost of a project based on past performance and on-going expenses.
Importance of ETC:
ETC is significant because it helps project managers to ascertain future costs, allocate resources wisely, and avoid budget overruns. It enables a more precise budget estimation basis on project progression.
Understanding ETC:
ETC can be considered as an upgraded version of the 'Estimate At Completion (EAC)' with the only difference being subtraction of 'Actual Cost (AC)' from EAC. This provides the estimated cost required to complete the remaining project work.
ETC Calculation:
ETC=EAC - AC.

Exam Tips: Answering Questions on ETC:
Understanding the formula and concept of ETC is key. Although calculations seem straightforward, it's important to read questions thoroughly to avoid confusion between similar terms like EAC, AC and ETC.
When answering questions, ensure clarity on whether the question requires computation or conceptual understanding. It's advisable to learn how ETC integrates with other project management parameters.
Remember Practice makes Perfect. Solve sufficient problems to gain confidence and accuracy.