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Jun 13, 2024

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Exercise 2 VAC Option Question 1  (1 point)     Project A You are given the following data regarding the Earned Value results of a project.  There are no approved change orders for this project.  Calculate ETC, EAC and VAC. Budget $500,000 Duration 900 days Status 600 days EV $180,000 PV $150,000 AC $178,000 BAC =   Assume that future cost estimates are accurate and do not change.   1) ETC = 2) EAC =  3) VAC =  1) ETC = BAC - EV = $500,000 - $180,000 = $320,000 2) EAC = AC + ETC = $178,000 + $320,000 = $498,000 3) VAC = BAC - EAC = $500,000 - $498,000 = $2,000
Question 2  (1.5 points)   Project A You are given the following data regarding the Earned Value results of a project.  There are no approved change orders for this project.  Calculate ETC, EAC and VAC. Budget $500,000 Duration 900 days Status 600 days EV $180,000 PV $150,000 AC $178,000 BAC =   Assume the spend rate continues for the rest of the project future  1) ETC = 2) EAC =  3) VAC =  ETC = $320,000 existing budget CPI = EV/AC = $180,000/$178,000 = 1.0112 ETC at same spend rate = $320,000 / 1.011236 = $316,444 (round to nearest dollar) ETC = $316,444 (at current spend rate) EAC = AC + ETC = $178,000 + $316,444 = $494,444 VAC = BAC – EAC = $500,000 - $494,444 = $5,556
Question 3  (1 point)   Project B You are given the following data regarding the Earned Value results of a project.  There are no approved change orders for this project.  Calculate ETC, EAC and VAC. Budget $220,000 Duration 350 Status 240 EV $180,000 PV $180,000 AC $192,000 BAC =   Assume that future cost estimates are accurate and do not change.   1) ETC = 2) EAC =  3) VAC =  1) ETC = BAC - EV = $220,000 - $180,000 = $40,000 2) EAC = AC + ETC = $192,000 + $40,000 = $232,000 3) VAC = BAC - EAC = $220,000 - $232,000 = -$12,000 Question 4  (1.5 points)   Project B You are given the following data regarding the Earned Value results of a project.  There are no approved change orders for this project.  Calculate ETC, EAC and VAC.
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Budget $220,000 Duration 350 Status 240 EV $180,000 PV $180,000 AC $192,000 BAC =   Assume that the same spend rate continues for the rest of the project  1) ETC = 2) EAC =  3) VAC =  ETC = $40,000 existing budget CPI = EV/AC = $180,000/$192,000 = 0.9375 ETC at same spend rate = $40,000 / 0.9375 = $42,667 (round to nearest dollar) ETC = $42,667 (at current spend rate) EAC = AC + ETC = $192,000 + $42,667 = $234,667 VAC = BAC – EAC = $220,000 - $234,667 = -$14,667 Question 5  (1 point)     Project C
You are given the following data regarding the Earned Value results of a project.  There are no approved change orders for this project.  Calculate ETC, EAC and VAC. Project C Budget $4,600,000 Duration 600 Status 80 EV $540,000 PV $580,000 AC $980,000 BAC =   Assume that future cost estimates are accurate and do not change.   1) ETC = 2) EAC =  3) VAC =  1) ETC = BAC - EV = $4,600,000 - $540,000 = $4,060,000 2) EAC = AC + ETC = $980,000 + $4,060,000 = $5,040,000 3) VAC = BAC - EAC = $4,600,000 - $5,040,000 = -$440,000 Question 6  (1.5 points)    Project C You are given the following data regarding the Earned Value results of a project.  There are no approved change orders for this project.  Calculate ETC, EAC and VAC.
Budget $4,600,000 Duration 600 Status 80 EV $540,000 PV $580,000 AC $980,000 BAC =   Assume that the same spend rate continues 1) ETC = 2) EAC =  3) VAC =  ETC = $4,060,000 existing budget CPI = EV/AC = $540,000/$980,000 = 0.5510 ETC at same spend rate = $4,060,000 / 0.551020 = $7,368,154 (round to nearest dollar) ETC = $7,368,154 (at current spend rate) EAC = AC + ETC = $980,000 + $7,368,154 = $8,348,154 VAC = BAC – EAC = $4,600,000 - $8,348,154 = -$3,748,154
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Question 7  (2.5 points)   Review the results in Project C and make a recommendation about the project budget. Based on the calculation of Project C, ETC = $7,368,154 EAC = $8,348,154 VAC = -$3,748,154 The negative VAC implies that the project is now expected to surpass the budget by a large amount if the same spending rate is maintained. According to this results, recommendation about the project budget would be to revisit the budget and ensure that appropriate measures are made to manage expenses and get the project back on schedule. This could involve evaluating expense forecasts, discovering cost-cutting options, maximizing resource use and applying tight cost management procedures. Also, it would be advisable to regularly monitor project costs and performance variables in the future to minimize further budget overruns and ensure that the project can be finished within the given budget. The budget may need to be adjusted depending on current cost estimates and project needs.