The EAC formula: AC + (BAC-EV)/CPI is supposed to be used when we find a tendency in cost, but, in which case do we use the variation EAC= BAC/CPI ? Saving Changes...
The formulas are mathematically equivalent once you break them down to the variables where CPI = EV/AC in the first formula and do a bit of algebra.
If you use the 1st formula, you can better evaluate what a change in efficiency (CPI) from that point on will do to the EAC. It uses actual work done + remaining work * efficiency. If the CPI going forward is different than the CPI for the work done, you are only adjusting the remaining work with a different projected CPI
If you were to change the CPI in the 2nd formula, that would give you a bad estimate because it changes the efficiency of not just what is left to go, but what has already been done. This formula assumes the same CPI throughout the whole project, when in reality your actual efficiency could change over time. Saving Changes...
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