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PK0-005 Practice Question: A project has a budget at completion (BAC) of…

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)?

⚠ Common exam trap

Watch out — 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.

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

✓

$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.

Answer analysis

Option-by-option breakdown

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.

  • ✗

    $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.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This PK0-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PK0-005 exam.