Estimate to Complete (ETC) in Earned Value Management
The 'Estimate to Complete' (ETC) is a crucial component in the field of project management. It is significant because it provides an estimation of the funds required to complete the remaining part of the project.
What it is: In the context of earned value management, Estimate to Complete (ETC) is the anticipated cost to complete the remaining work in a project. It is calculated by subtracting the actual cost (AC) till date from the Estimate at Completion (EAC).
How it works: ETC = EAC - AC. Here, the EAC is the total estimated cost of the project at completion, and AC is the actual cost incurred till the current reporting period.
It is a key element in project management that helps in understanding whether the project is on track concerning budget and if there are any potential budget overruns.
Guide to answer Estimate to Complete (ETC) questions:
Understanding the concept thoroughly is crucial in answering ETC related questions. Remember the formula for ETC, practice calculation-based problems, and carefully read the question to interpret what is asked.
Exam Tips:
1. Understand the relationship between ETC, EAC, and AC.
2. Practice problems related to ETC to build familiarity.
3. In the exam, take care to read the question carefully and understand what is asked before answering.
4. Do not confuse ETC with Estimate at Completion or any other similar terms.
5. Always remember, ETC is about future expenditure, not past.
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Estimate to Complete practice test
Estimate to Complete (ETC) is a concept used to forecast the cost required to complete the remaining work in a project. It represents an updated estimate of the project budget based on its current performance and any changes in scope or resources. ETC can be calculated by subtracting the Actual Cost (AC) from the Estimate at Completion (EAC), or by dividing the remaining work (Budget at Completion (BAC) - Earned Value (EV)) by the Cost Performance Index (CPI). Calculating ETC helps project managers determine if the project will finish within the original budget or if additional funds will be required, allowing them to manage the project more effectively and make necessary changes to successfully complete the project.
Time: 5 minutes Questions: 5
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Project Management Professional Preparation Package (2024)
- Earn 35 PDUs needed for your PMP certification
- 8199 Superior-grade Project Management Professional practice questions.
- Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
- Unlock Effortless PMP preparation: 5 full exams.
- 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
- bonus: If you upgrade now you get upgraded access to all courses