CAPM Predictive Plan-Based Methodologies Practice Question
A project manager is executing a predictive project to build a data center. The project is halfway complete, and the project manager is analyzing cost performance. The earned value (EV) is $500,000, the planned value (PV) is $600,000, and the actual cost (AC) is $550,000. The project manager needs to forecast the total cost at completion, assuming the current cost performance will continue. Which earned value management (EVM) metric should the project manager use to determine the estimate at completion (EAC)?
⚠ Common exam trap
The trap here is assuming that any EAC formula works, but the scenario explicitly states that current cost performance will continue, which points to the CPI-based formula.
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
✓
EAC = BAC / CPI
When the current cost performance is expected to continue, the estimate at completion is calculated by dividing the budget at completion by the cost performance index. This method uses the actual cost efficiency to forecast the total cost. Other formulas assume atypical variances or incorporate schedule performance, which are not indicated in the scenario. Thus, the CPI-based EAC formula is the correct choice.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
EAC = AC + ETC
Why it's wrong here
This formula requires an independent estimate to complete (ETC) based on a new bottom-up estimate. The scenario does not mention that a new estimate has been prepared; it assumes the current cost performance will continue. Therefore, using AC plus a manually derived ETC is not appropriate here; the project manager should use the CPI-based formula.
- ✓
EAC = BAC / CPI
Why this is correct
When the current cost performance is expected to continue, the estimate at completion (EAC) is calculated as budget at completion (BAC) divided by cost performance index (CPI). This is the most common EAC formula used when no other assumptions are made. It uses the CPI to project the remaining work at the same cost efficiency. This directly addresses the scenario's requirement.
- ✗
EAC = AC + (BAC - EV) / (CPI * SPI)
Why it's wrong here
This formula considers both cost and schedule performance and is used when the project manager wants to account for both cost and schedule constraints. However, the scenario only mentions that current cost performance will continue; it does not indicate that schedule performance should also be factored in. Therefore, this formula is not the best fit.
- ✗
EAC = AC + (BAC - EV)
Why it's wrong here
This formula assumes that the remaining work will be completed at the planned rate, regardless of current cost performance. It is used when the current variances are considered atypical and not expected to continue. In this scenario, the project manager assumes the current cost performance will continue, so this formula is not appropriate.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PMI exam blueprint
This CAPM practice question is part of Courseiva's free PMI 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 CAPM exam.