CAPM (Certified Associate in Project Management) Practice Exam

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Prepare for the CAPM Exam with challenging questions and comprehensive explanations. Utilize flashcards and multiple choice quizzes to enhance your project management knowledge. Ace your exam with confidence!

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When is the new estimate for EAC most applicable?

  1. When costs are precisely as budgeted

  2. When the actual performance to date shows that the original estimates were accurate

  3. When the original estimates were fundamentally flawed

  4. When project is completed on schedule

The correct answer is: When the original estimates were fundamentally flawed

The most applicable time to use the new estimate for EAC (estimate at completion) is when the original estimates were fundamentally flawed. This means that the original estimates were significantly incorrect and do not accurately represent the current progress of the project. Option A is incorrect because if costs are precisely as budgeted, there would be no need to revise the estimate for EAC. Option B is incorrect because if actual performance to date shows that the original estimates were accurate, there would be no need to adjust the estimate for EAC. Option D is incorrect because the project being completed on schedule does not necessarily indicate that the original estimates were flawed. When the original estimates were significantly incorrect, it is important to re-evaluate and adjust the EAC in order to accurately reflect the current status of the project.