The Best Measurement for Estimating Total Project Cost
Question
Which of the following measurements would give the project manager the BEST estimate of the total cost of an active project?
Answers
Explanations
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A. B. C. D.A.
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Of the four options provided, the best estimate of the total cost of an active project is given by the Estimate at Completion (EAC). EAC is an estimate of the total cost of a project, calculated based on actual project performance and current estimates of how much work remains to be done.
The EAC takes into account actual costs incurred to date, as well as revised estimates for the remaining work, including any expected changes to the project's scope, schedule, or budget. By considering these factors, the EAC provides the project manager with a more accurate estimate of the total cost of completing the project than other metrics, such as the Budget at Completion (BAC), the To-Complete Performance Index (TCPI), or the Estimate to Complete (ETC).
The BAC represents the original budget for the project, while the TCPI represents the efficiency required to meet the remaining budget. These metrics do not reflect changes in project performance or scope, and as such, they may not accurately predict the total cost of the project.
The ETC, on the other hand, provides an estimate of the cost to complete the remaining work, based on current project performance. While the ETC is useful for monitoring and controlling project costs, it does not provide an estimate of the total cost of the project.
In summary, the EAC is the best estimate of the total cost of an active project, as it takes into account actual project performance, revised estimates for the remaining work, and any expected changes to the project's scope, schedule, or budget.
