Essential Mathematical Formulas for PMP Certification Test
A = B + C
Example
Assume you’re constructing a treehouse and estimate the cost to be $1,000. However, as time goes on, you find you’ve spent more than you anticipated.
Let’s dissect it:
– Total estimated cost to complete the treehouse: $1,000
– So far, the actual cost has been $700.
Based on your present progress, you must now estimate how much more money you will need to finish the treehouse. Estimate to Complete (ETC) is calculated as follows:
[ETC = Estimated Total Cost – Incurred Cost]
In this instance:[ETC = $1,000 – $700 = $300 \]
As a result, the Estimate to Completion (ETC) for finishing the treehouse is $300. Based on the current spending rate and progress, it shows the additional money you estimate to spend to complete the project. ETC assists project managers in predicting the remaining expenditures required to complete the project and efficiently managing the budget.
