Quick Answer
The answer is $240,000 because the estimate at completion (EAC) formula for a continued cost performance assumption is EAC = BAC / CPI. Since the cost performance is expected to continue at the same rate, you first calculate the cost performance index (CPI) as EV divided by AC, which is $100,000 / $120,000 = 0.8333, then divide the BAC of $200,000 by that CPI to arrive at $240,000. On the CompTIA Project+ PK0-005 exam, this scenario tests your ability to distinguish between EAC formulas; a common trap is mistakenly using the formula for atypical variances (EAC = AC + (BAC - EV)) when the question explicitly states cost performance will continue. Remember the mnemonic "Continue CPI" — if the problem says performance will persist, you always divide BAC by CPI.
This PK0-005 practice question tests your understanding of tools and documentation. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A project has a budget at completion (BAC) of $200,000. The earned value (EV) is $100,000 and the actual cost (AC) is $120,000. If the cost performance is expected to continue, what is the estimate at completion (EAC)?
$240,000
EAC = BAC/CPI = $200,000 / (100,000/120,000) = $200,000 / 0.8333 = $240,000.
$200,000
Why wrong: This is the original BAC, not adjusted for cost overrun.
$220,000
Why wrong: This value might come from AC + (BAC - EV) = $120,000 + $100,000 = $220,000, but that formula is for EAC when future work is at planned rate, not when cost performance continues.
$180,000
Why wrong: This does not match any standard EAC formula.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
$240,000
The estimate at completion (EAC) when cost performance is expected to continue is calculated using the formula EAC = BAC / CPI, where CPI = EV / AC. Here, CPI = $100,000 / $120,000 = 0.8333, so EAC = $200,000 / 0.8333 = $240,000. This formula assumes the same cost efficiency will persist for the remainder of the project.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
$240,000
Why this is correct
EAC = BAC/CPI = $200,000 / (100,000/120,000) = $200,000 / 0.8333 = $240,000.
Related concept
Read the scenario before looking for a memorised answer.
$200,000
Why it's wrong here
This is the original BAC, not adjusted for cost overrun.
$220,000
Why it's wrong here
This value might come from AC + (BAC - EV) = $120,000 + $100,000 = $220,000, but that formula is for EAC when future work is at planned rate, not when cost performance continues.
$180,000
Why it's wrong here
This does not match any standard EAC formula.
Common exam traps
The trap here is that candidates often confuse the EAC formula for continued cost performance with the formula for atypical variances (EAC = AC + (BAC - EV)), leading them to incorrectly select $220,000.
Detailed technical explanation
The EAC formula used here (EAC = BAC / CPI) is the most common when the cost variance is expected to continue at the same rate, as it extrapolates the current cost efficiency index. In earned value management (EVM), CPI is a key metric; a CPI below 1.0 indicates cost overrun, and using BAC / CPI projects the total cost if that inefficiency persists. Real-world scenarios, such as long-term construction projects, often use this formula when the root cause of cost overruns (e.g., material price increases) is unlikely to change.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the PK0-005 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
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FAQ
Tools and Documentation — This question tests Tools and Documentation — Read the scenario before looking for a memorised answer..
The correct answer is: $240,000 — The estimate at completion (EAC) when cost performance is expected to continue is calculated using the formula EAC = BAC / CPI, where CPI = EV / AC. Here, CPI = $100,000 / $120,000 = 0.8333, so EAC = $200,000 / 0.8333 = $240,000. This formula assumes the same cost efficiency will persist for the remainder of the project.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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