# EAC: Which formula to use

Discussion in 'PMP' started by Deepti Bhattacharya, Sep 14, 2020.

1. ### Deepti Bhattacharya Active Member

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Which formula of EAC to use here? Answer says one with CPI and SPI both, but how did they arrive at the conclusion

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2. ### MAHESH TANAJI SANKPAL Active Member

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Sep 12, 2019
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My views - To be confirmed by Simplilearn SME:

Given (I have ignored the thousands 000):
EV = 1000
PV = 1200
AC = 1200

BAC - EV = 1000
BAC - 1000 = 1000
BAC = 2000

SPI = 10 /12 => Behind Schedule
CPI = 10 /12 => Over Budget

Since we are given that the CPI trend will remain the same in the future as well:
EAC = BAC / CPI
= 2000 / (10/12)
= 2400

If we were given that both CPI and SPI will affect the future costs then the formula will be:
EAC = AC + [(BAC - EV) / (SPI * CPI)]
= 1000 + [ 1000 / (10/12 * 10/12)
= 1000 + 1440
= 2440

Note the fact that SPI will also impact the cost is not explicitly stated in the problem and so we should not use the above formula.
Moreover the answer also does not match with any of the options.

Please refer to PMBOK page 267 for all the formulas for EAC.

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