CAPM (Certified Associate in Project Management) Practice Exam

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What does the performance estimate high technique for finding EAC equal?

EAC = AC + BAC + EV
EAC = AC + (BAC - EV) / (CPI)
EAC = AC + (BAC - EV) / (CPI)(SPI)
EAC = AC - (BAC + EV) / (CPI)(SPI)

The correct answer is: EAC = AC + (BAC - EV) / (CPI)(SPI)

The correct answer is C. In the performance estimate high technique for finding EAC (Estimate at Completion), the formula is EAC = AC + (BAC - EV) / (CPI)(SPI). This formula takes into account the actual cost (AC), budget at completion (BAC), earned value (EV), cost performance index (CPI), and schedule performance index (SPI) to estimate the total cost of the project upon completion. By using both CPI and SPI in the formula, this technique provides a more accurate estimate by considering both cost and schedule performance factors. Option A is incorrect as it includes the budget at completion (BAC) twice, which is not part of the standard EAC formula. Option B is incorrect as it incorrectly combines the cost and schedule performance indices without multiplying them together. Option D is incorrect as it has the incorrect signs and does not include the correct multiplication of the CPI and SPI in the formula.