The answer is EAC = AC + (BAC - EV). This formula is correct because the estimate at completion one-time cost variance is treated as a singular event that will not affect future performance; since the overrun is due to a non-recurring licensing fee, the remaining work is expected to proceed at the original planned rate, so you simply add the current actual cost to the budgeted cost of the remaining work. On the PMP exam, this scenario tests your ability to distinguish between a one-time variance and a fundamental performance trend—a common trap is applying the CPI-based formula (EAC = BAC / CPI) when the variance is not expected to continue. A reliable memory tip is to think of it as “fix the past, plan the future”: add the one-time overrun to the original budget for the rest of the work.
PMP Process — Managing Technical Aspects Practice Question
This PMP practice question tests your understanding of process — managing technical aspects. 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.
Your IT infrastructure project is running 15% over budget at the midpoint. After analyzing the variance, you find that the cost overrun is due to a one-time increase in licensing fees that will not recur. The project is on schedule. What is the BEST estimate for the Estimate at Completion (EAC)?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
EAC = AC + (BAC - EV)
Since the variance is one-time and not expected to continue, the formula EAC = AC + (BAC - EV) is appropriate, assuming future work will be at the planned rate.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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 = BAC / CPI
Why it's wrong here
This assumes the cost variance is typical and will continue, which is not the case.
✗
EAC = AC + [(BAC - EV) / (CPI * SPI)]
Why it's wrong here
This formula considers both cost and schedule performance, but schedule is on track and variance is atypical.
✓
EAC = AC + (BAC - EV)
Why this is correct
This formula is used when past cost variances are not expected to continue.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
EAC = AC + ETC
Why it's wrong here
ETC would need to be re-estimated, but given the one-time variance, the formula is most appropriate.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the PMP 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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this PMP question in full detail.
Identify which PMP exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Process — Managing Technical Aspects — This question tests Process — Managing Technical Aspects — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: EAC = AC + (BAC - EV) — Since the variance is one-time and not expected to continue, the formula EAC = AC + (BAC - EV) is appropriate, assuming future work will be at the planned rate.
What should I do if I get this PMP question wrong?
Identify which PMP exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Are there clue words in this question I should notice?
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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