TOPIC: Free PMP® Exam Sample Question of the Week

Hello everyone! Here is this week's free PMP® exam sample question from the PM Exam Simulator.

A project manager is required to anticipate the total final cost for a schedule activity. The past performance shows that the original estimating assumptions are no longer relevant to the present situation. Which of the following approaches should the project manager use to calculate the cost?

A. EAC using new estimate
B. EAC using remaining budget
C. ETC based on new estimate
D. ETC based on typical variances

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HINT: EAC is Estimate At Completion; ETC is Estimate To Complete.

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Answer and Explanation:
The correct answer is A.

The project manager should determine the EAC with a new estimate. This approach is used only when the original estimating assumptions are no longer relevant in the present scenario.