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PK0-005 Practice Question: A project manager is calculating the estimate to…
A project manager is calculating the estimate to complete (ETC) for a task using earned value management. The task has a budget at completion (BAC) of $10,000, earned value (EV) of $4,000, and actual cost (AC) of $5,000. Assuming the work will continue at the planned rate, what is the ETC?
⚠ Common exam trap
CompTIA often tests the distinction between ETC formulas based on whether future work will follow the planned rate or the current cost performance, and the trap here is that candidates may default to using the CPI-adjusted formula (ETC = (BAC - EV) / CPI) without reading the condition 'at the planned rate,' leading to an incorrect answer.
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
✓
$6,000
The estimate to complete (ETC) is the expected cost to finish the remaining work. When work continues at the planned rate, the formula is ETC = BAC - EV. Here, BAC is $10,000 and EV is $4,000, so ETC = $10,000 - $4,000 = $6,000. This assumes the cost performance index (CPI) is 1.0, meaning future work will be performed exactly as budgeted.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$11,000
Why it's wrong here
ETC at the planned rate is BAC minus EV, giving $6,000; $11,000 adds AC to the remaining budget instead. It is tempting because AC is a known figure in the stem, and it would be correct if the question asked for the estimate at completion (EAC).
- ✗
$4,000
Why it's wrong here
ETC at the planned rate equals BAC minus EV, giving $6,000, not $4,000. The $4,000 figure merely restates earned value, tempting because EV appears in the formula, yet it measures completed work rather than the remaining budget required to finish the task.
- ✗
$5,000
Why it's wrong here
ETC at the planned rate is BAC minus EV, which equals $6,000; $5,000 is the actual cost already incurred. AC is tempting because it represents real spending on the task, but it describes sunk cost rather than the forecast needed to complete remaining work.
- ✓
$6,000
Why this is correct
Assuming future work proceeds at the planned rate, the estimate to complete uses the remaining budget: BAC minus EV, giving $10,000 − $4,000 = $6,000. This satisfies the stem's constraint that work continues at the planned rate, rather than the current cost performance, which would instead require dividing by the cost performance index.
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