ITPEC FE Morning October 2021 Question 52

Source exam: ITPEC FE Morning October 2021Topic: Project Management

ITPEC FE Morning October 2021 — Question 52 of 80

Earned Value — Estimate to Complete (ETC) — calculate remaining cost using CPI.

Given:
- BAC = $100,000, AC = $60,000, completion = 40%

- EV = 40% × $100,000 = $40,000

- CPI = EV / AC = 40,000 / 60,000 = 2/3

Remaining work (planned): BAC − EV = $60,000

Since CPI stays the same:
- ETC = (BAC − EV) / CPI = $60,000 / (2/3) = $90,000

Why not others:
- (a) $40,000 — remaining work at planned cost (ignores CPI overrun)

- (b) $60,000 — equals AC spent so far, not remaining cost

- (d) $150,000 — this is EAC (total project cost = AC + ETC), not remaining cost

Key rule: ETC = (BAC − EV) / CPI for remaining cost; EAC = AC + ETC for total cost. The question asks for remaining, so use ETC.

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