PK0-005 Tools and Documentation Practice Question
A project has a budget at completion (BAC) of $200,000. The earned value (EV) is $120,000 and the actual cost (AC) is $150,000. What is the estimate at completion (EAC) using the typical cost performance index (CPI) assumption?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
$250,000
EAC = BAC / CPI. CPI = EV/AC = $120,000/$150,000 = 0.8. Thus, EAC = $200,000 / 0.8 = $250,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$170,000
Why it's wrong here
This might be from subtracting the variance, but EAC formula typically uses CPI.
- ✗
$300,000
Why it's wrong here
This would be BAC / (EV/BAC) or similar miscalculation.
- ✓
$250,000
Why this is correct
Correct. EAC = BAC / CPI = $200,000 / 0.8 = $250,000.
- ✗
$230,000
Why it's wrong here
This is not derived from standard EAC formulas.
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