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Business Exam Prep · Saturday · 4 min

CAPM Exam Prep 44, EVM Forecasts — EAC, ETC, VAC, TCPI

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Estimate at Completion (EAC) is your new forecasted total project cost, most commonly calculated as Budget at Completion (BAC) divided by the Cost Performance Index (CPI). - Estimate to Complete (ETC) is the remaining funds required to finish the project, calculated as EAC minus the Actual Cost (AC). - Variance at Completion (VAC) shows your projected budget surplus or deficit at the end, found by subtracting EAC from the original BAC. - The To-Complete Performance Index (TCPI) calculates the required cost efficiency to meet a target, such as the original BAC, and is found by dividing the remaining work (BAC - EV) by the remaining funds (BAC - AC). - A common CAPM exam trap involves multiple EAC formulas; if the question implies current performance will continue, always use the EAC = BAC / CPI formula. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:
- Estimate at Completion (EAC) is your new forecasted total project cost, most commonly calculated as Budget at Completion (BAC) divided by the Cost Performance Index (CPI).
- Estimate to Complete (ETC) is the remaining funds required to finish the project, calculated as EAC minus the Actual Cost (AC).
- Variance at Completion (VAC) shows your projected budget surplus or deficit at the end, found by subtracting EAC from the original BAC.
- The To-Complete Performance Index (TCPI) calculates the required cost efficiency to meet a target, such as the original BAC, and is found by dividing the remaining work (BAC - EV) by the remaining funds (BAC - AC).
- A common CAPM exam trap involves multiple EAC formulas; if the question implies current performance will continue, always use the EAC = BAC / CPI formula.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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