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TOPIC: ETC formulas explained

ETC formulas explained 4 years 1 month ago #18159

 Ally Fulton Topic Author Offline Fresh Boarder Posts: 4 Thank you received: 0 Hi all, I haven't been able to find any online resources that give a good explanation of the ETC formulas. I'd like to understand the difference between: ETC = EAC - AC, and ETC = BAC - EV Fundamentally, this is a question about EAC vs BAC, and AC vs EV. As I understand it, BAC is the original estimate, and EAC is a more recent estimate considering current project data. AC is the actual cost you've spent so far, while EV is the actual value in the amount of work you've completed ("earned") with however much you've spent so far. Correct me if I'm wrong or if there's a better explanation. **What I'm confused about is why EAC is paired with AC, and BAC paired with EV. Why can't you mix and match those values to get ETC?** If a problem gives you BAC, are you supposed to know to subtract using EV and not AC automatically? Second question - why do the other subsequent formulas use BAC-EV as their base rather than EAC - AC? i.e. ETC = (BAC - EV) / (CPI * SPI) and ETC = BAC / CPI - AC Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.