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Exam PMI-SP topic 2 question 80 discussion

Actual exam question from PMI's PMI-SP
Question #: 80
Topic #: 2
[All PMI-SP Questions]

You are the project manager of the NHQ project. Your project has a budget of $1,258456 and is scheduled to last for three years. Your project is currently forty percent complete though it should be forty-five percent complete. In order to reach this point of the project, you have spent $525,000. Management needs a performance report regarding the NHQ project. Management is concerned that this project will be over budget upon completion. Based on the current performance value what should you report to management regarding the variance at completion?

  • A. -$21,618
  • B. -$62,922
  • C. Zero - you would not know what this will cost until the project is complete.
  • D. -$54,044
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Suggested Answer: D 🗳️
The variance at completion can be found by subtracting the estimate at completion from the budget at completion. In this instance, it is:
Variance at completion = EAC - BAC
= $1,258,456 - $1,312,500.
= -$54,044
Incorrect Answers:
A: This is the cost variance for the project.
B: This is the schedule variance for the project.
C: You can calculate the variance at completion.
by Mabruk at Dec. 19, 2020, 4:35 p.m.

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ed55bcd
7 months, 4 weeks ago
Formula wrong, but the answer is correct: BAC-EAC
upvoted 1 times
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ed55bcd
8 months, 2 weeks ago
The answer is D, this is how I got my results. The formula is: BAC-EAC To get the EAC, I divided the AC (525000) by 2 which gave me 262,500, and then multiply the AC (525000) by 2 which gave me 1,050,000. Next I added 1,050,000 to 262,500 to get 1,312,500. Then: BAC-EAC= 1258456-1312500= -54,044.
upvoted 1 times
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lucksuman
3 years, 1 month ago
Should use VAC = BAC - EAC where EAC = BAC/CPI because of current performance value used.
upvoted 2 times
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Mabruk
3 years, 10 months ago
I think the answer should be (A) = -$21,618 EV = 503,382.4 EAC = AC+(BAC-EV)=1,280,073.6 VAC = BAC – EAC=-21,617.6
upvoted 2 times
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