A software project's original cost assumptions have proven unreliable, so the team produced a fresh bottom-up estimate to complete of $340,000. Actual costs incurred to date are $260,000. Which value should the project manager report as the EAC?

Question

Accepted Answer

$600,000. With a fresh ETC, EAC = AC + ETC = $260,000 + $340,000 = $600,000. Option A reports only the new ETC and omits sunk costs; D reports only the money already spent and ignores remaining work; C is the arithmetic difference, not the completion forecast. Only B correctly sums actuals plus the new estimate to complete.

A software project's original cost assumptions have proven unreliable, so the team produced a fresh bottom-up estimate to complete of $340,000. Actual costs incurred to date are $260,000. Which value should the project manager report as the EAC?

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