ITPEC IP April 2019 Question 57
ITPEC IP April 2019 — Question 57 of 100
At the current rate, the 60 programs will cost 22.5 million yen, which is 4.5 million yen over budget. Forty programs cost 15 million, so the cost per program is 15 / 40 million. The projected total is 15 × 60 / 40 = 22.5 million, and 22.5 - 18 = 4.5 million.
Answer (b)
Why not others:
- 3, 6, and 7.5 million do not follow from scaling the observed cost for 40 equal programs to all 60
Key rule: When unit size and productivity are equal, forecast total cost by multiplying current cost by total units / completed units, then subtract the budget.
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