Budget at Completion

Correct Answer: $600,000

At 40% completion, the project has incurred costs of $240,000. This means the cost per percentage point of completion is $240,000 divided by 40%, which equals $6,000 per percent. If spending continues at this rate, the total cost at 100% completion will be 100% multiplied by $6,000 per percent, resulting in $600,000. Therefore, if the expenditure continues at the same pace, the expected budget at completion will be $600,000.

Correct Answer: $600,000

The question involves the calculation of the Estimate at Completion (EAC), a forecast of what the total project cost will be at the project's current rate of spending. Since the project is 40% complete and has already cost $240,000, this implies that the equivalent cost for 100% of the project, at the same rate, would be $240,000/(40/100) = $600,000. Hence, the correct answer is '$600,000'. The other answers -$540,000, $580,000 and $620,000- represent different total costs and are therefore incorrect because they do not match the calculated estimated total cost of $600,000.

Correct Answer: $250,000

The project manager has already spent $50,000 to complete 20% of the project. If $50,000 is 20%, then the total cost at completion, assuming the same rate of spending, can be found by dividing $50,000 by 20% (or 0.20 in decimal form) which equals to $250,000. Therefore, the estimated budget at completion is $250,000. The other answers are incorrect because they do not accurately reflect the amount calculated ($200,000 is the original budget but it was underestimated, $150,000 and $100,000 are less than the calculated total cost).