In a highway project 5 miles (8 kilometers) out of the total 15 miles (24 kilometers) have been
completed. The BAC is $900,000. Which of the following represents the ETC of this project?
A.
$150,000
B.
$300,000
C.
$450,000
D.
$600,000
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1/3 of the Miles completed, which means 1/3 of the BAC is expended, which means that the answer should be D.
Estimate To Complete (ETC)
Estimate To Complete (ETC) is the estimated cost required to complete the remainder of the project.
Estimate To Complete (ETC) is calculated and applied when the past estimating assumptions become invalid and a need for fresh estimates arises.
ETC is used to compute the Estimation At Completion (EAC).
Budget At Completion (BAC)
Budget At Completion (BAC) is the total budget allocated to the project.
Budget At Completion (BAC) is generally plotted over time. Say like periods of reporting (Monthly, Weekly, etc.)
BAC is used to compute the Estimate At Completion (EAC), explained in next section.
BAC is also used to compute the TCPI and TSPI.
Estimate To Complete (ETC)
Estimate To Complete (ETC) is the estimated cost required to complete the remainder of the project.
Estimate To Complete (ETC) is calculated and applied when the past estimating assumptions become invalid and a need for fresh estimates arises.
ETC is used to compute the Estimation At Completion (EAC).
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1/3 of $900,000 is $300,000.
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