BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The is no formula, it is what it will take to finish the project
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Budget-Actuals
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Revenue-Direct Costs
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Contribution-GOP
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Detailed explanation-1: -You will calculate the Estimate at Completion, and then you will subtract the actual cost from it.
Detailed explanation-2: -The estimate to complete is the expected cost to finish all the remaining work. It projects how much more will be spent on the project, based on past performance. ETC = EAC-AC – Assuming that the work is proceeding to plan, the cost of completing the remaining authorized work can be calculated using this formula.
Detailed explanation-3: -EAC = AC + ETC: This formula is the most generic and is often used when BAC is estimated from inaccurate or erroneous data. In this case, the EAC represents the sum of Actual Cost (AC) and Estimate to Completion (ETC).
Detailed explanation-4: -What is Estimate to Complete (ETC) in project management? The Estimate To Complete (usually abbreviated ETC) is the cost performance index and project management measure that shows you the remaining cost you expect to pay in order to complete a project.
Detailed explanation-5: -When you build a schedule you need to understand how to estimate duration. If everyone worked eight hours per day, and was 100% productive for all eight hours, you could easily calculate your estimated project duration by taking the number of effort hours, divided by the number of resources.