MANAGEMENT

Detailed explanation-1: -EAC = BAC / CPI: This is the most recommended calculation when the project is in progress without interference. To check the EAC, divide the BAC by the Cost Performance Index (CPI). EAC = AC + BAC – EV / CPI x SPI: This is the formula used when schedule delays and expenses increase.

Detailed explanation-2: -Estimate at completion (EAC) predicts total costs, while estimate to complete (ETC) predicts the money a project still needs. ETC is the forecast of all additional money required to complete a project. It does not account for money already spent.

Detailed explanation-3: -Frequently this range is based on these two equations: the first is the EAC CPI which uses the cumulative CPI as a single performance factor and the second is the EAC composite which uses the cumulative CPI times the cumulative SPI as the performance factor.

Detailed explanation-4: -Estimate at completion (EAC) is calculated as budget at completion divided by cost performance index. Formula 1 for EAC is as follows: Estimate at completion (EAC) = Budget at completion (BAC) / Cost performance index (CPI)