Which calculation would provide insight into the project’s future performance based on both current spending and work completed?

Prepare for the WGU MGMT3400 C722 Project Management Exam with comprehensive flashcards and multiple-choice questions. Each question includes hints and detailed explanations to boost your readiness for success!

The Estimate at Completion (EAC) is a critical calculation in project management that provides insight into the future performance of a project by combining the current spending and the work completed to determine the total expected cost of the project at its completion. EAC accounts for the overall progress made on the project up to the present moment, along with how much money has already been spent, which gives project managers a clearer view of whether the project will be completed within its budget.

Calculating the EAC allows project stakeholders to adjust forecasts based on actual performance rather than merely relying on initial budget estimates. This is particularly important because it helps in identifying if the project is likely to go over budget and provides an opportunity to implement corrective actions if necessary. The EAC can be computed using different formulas, depending on the circumstances of the project, but its main advantage is its ability to integrate current data to project future outcomes effectively.

Other metrics like the Estimate to Completion (ETC), Cost Performance Index (CPI), and Schedule Variance (SV) serve different purposes. The ETC focuses specifically on estimating how much more money is needed to complete the project based on the work remaining. The CPI measures cost efficiency by comparing the earned value against actual costs, indicating how well the project

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