Example Problems
Q1. Using EAC = AC + (BAC – EV)
- Actual Cost (AC): RS. 1,00,000
- Budget at Completion (BAC): RS. 2,00,000
- Earned Value (EV): RS. 1,20,000
Calculation:
EAC = AC + (BAC – EV) EAC = RS. 1,00,000 + (RS. 2,00,000 – RS. 1,20,000) EAC = RS. 1,00,000 + RS 80,000 EAC = RS. 1,80,000
Result:
The Estimate at Completion (EAC) using this method is RS. 1,80,000.
Q2. EAC = Actual Cost (AC) + Estimate to Complete (ETC)
- Actual Cost (AC): RS. 80,000
- Estimate to Complete (ETC): RS. 20,000
Calculation:
EAC = AC + ETC EAC = RS. 80,000 + RS. 20,000 EAC = RS. 1,00,000
Result:
The Estimate at Completion (EAC) using this method is RS. 1,00,000.
What Is Estimate at Completion in Project Management (EAC)?
Estimate at Completion (EAC) is a crucial concept in project management, providing project managers with a forecasted total cost based on current performance and expenditures. By evaluating actual costs and estimating remaining expenses, EAC helps project teams anticipate the financial requirements for successful project completion. The utilization of various calculation methods adds flexibility to adapt projections as projects evolve, enhancing the precision of cost predictions.
Table of Content
- What is the Estimate at Completion in Project Management (EAC)?
- Importance of Estimate at Completion (EAC)
- Methods for Calculating EAC
- EAC Formulas and Techniques
- Example Problems
- Factors Influencing EAC Accuracy
- Real-world Applications and Case Studies
- Limitations and Challenges of EAC
- Best Practices for Using EAC in Project Management
- Conclusion: Estimate at Completion in Project Management
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