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Oliver 175 - 108th Question

hit.singh
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Oliver 175 - 108th Question

Fri Nov 20, 2015 12:07 pm

Plese help. I calculated with answer C while correct is D

I simply used EAC=AC+BAC-EV

108. Your project exceeded costs in the past caused by an underestimation of resource costs in the cost baseline:
PV: $1,200,000, EV: $1,000,000, AC: $1,200,000
You expect the underestimation to influence the future as much as it did in the past.
If the value of the remaining work (BAC – EV) is at $1,000,000, what should be your new EAC (estimate at completion)?
A. $1,800,000
B. $2,000,000
C. $2,200,000
D. $2,400,00
ujjal_show
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Re: Oliver Q108

Fri Nov 20, 2015 5:45 pm

Key term is "variance influence the future" So EAC =BAC/CPI

EAC =2000000/(1000000/1200000) =2400000
meenakhan
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Re: Oliver Q108

Tue Dec 29, 2015 5:54 am

ujjal_show wrote:Key term is "variance influence the future" So EAC =BAC/CPI

EAC =2000000/(1000000/1200000) =2400000
I am not clear on this how come BAC=2000000, please clarify?

Thanks
ujjal_show
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Re: Oliver Q108

Tue Dec 29, 2015 4:49 pm

BAC-EV =1000000.
EV=1000000, So BAC=?
meenakhan
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Re: Oliver Q108

Tue Dec 29, 2015 4:58 pm

ujjal_show wrote:BAC-EV =1000000.
EV=1000000, So BAC=?
Got it thanks much:)

Meena
bjjj
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Re: Oliver Q108

Fri Jan 08, 2016 7:51 pm

My two cents. I may be wrong.

If we use EAC = BAC/CPI, then EAC = 2400000. ETC = 2,400,000 - AC. So, ETC = 2,400,000 - 1,200,000 = 1,200,000.
Isn't it inconsistent with the given ETC in the Question Statement which is 1,000,000?

EAC = AC + (BAC-EV) = 2,000,000.
ujjal_show
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Re: Oliver Q108

Sat Jan 09, 2016 7:46 pm

Isn't it inconsistent with the given ETC in the Question Statement which is 1,000,000?
from where you get this ETC = 1,000,000 ??
bjjj
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Re: Oliver Q108

Sat Jan 09, 2016 8:56 pm

Value of the Remaining Work is 1,000000 = (BAC-EV). Isn't that ETC as given? Thanks
ujjal_show
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Re: Oliver Q108

Sun Jan 10, 2016 11:20 am

that is Remaining Work, estimate to complete only if project get complete by budgeted rate, where PV=EV=AC or if there is no variation or one time variation.
bjjj
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Re: Oliver Q108

Tue Jan 12, 2016 7:00 am

Thanks!

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