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How to calculate EAC?

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Can someone give all the formulas that can be used to calculate EAC (Estimate At Complete)? Which one is the easiest? Which one is the most used?
asked 8 years ago by anonymous

1 Answer

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It all depends on the situation and there are many scenarios.

Scenario 1: if past variance (performance) is expected to continue (good or bad) then we can expect there will be a CPI (Cost Performance Index) for the work done to date. Than EAC = BAC / CPI (BAC = Budget at Completion = Original Estimate).

Scenario 2: if we expect the upcoming work will be perfectly in accordance with original plan (wishful thinking) then EAC = AC (Actual Cost to date) + Remaining Budget .... Remaining Budget = BAC - EV ... so EAC = AC + BAC - EV.

Scenario 3: not sure if the original plan is valid anymore --- EAC = AC + ETC (new estimate for the remaining work).
answered 8 years ago by anonymous

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