A project was budgeted at $1,000,000. Meanwhile, the project is executed, and the following current figures have been assessed: PV: $500,000 EV: $450, 000 AC: $550, 000 Assuming that the cost variance was caused by one-time cost drivers, which are no more effective, what estimate at completion (EAC) can you derive from these figures?

A project was budgeted at $1,000,000. Meanwhile, the project is executed, and the following current figures have been assessed: PV: $500,000 EV: $450, 000 AC: $550, 000 Assuming that the cost variance was caused by one-time cost drivers, which are no more effective, what estimate at completion (EAC) can you derive from these figures?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter23: Flexible Budgeting (flexbud)

Section: Chapter Questions

Problem 5R

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Question

A project was budgeted at $1,000,000. Meanwhile, the project is executed, and the following current figures have been assessed:

PV: $500,000

EV: $450, 000

AC: $550, 000

Assuming that the cost variance was caused by one-time cost drivers, which are no more effective, what estimate at completion (EAC) can you derive from these figures?

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