![]() ![]() Note what is sometimes called “VAC calculation PMP” is a projection not the budget variance for the present state (which is cost variance). In short, the VAC is the amount of expected budget overrun or underrun at the end of the project. ![]() A negative VAC indicates the project will exceed the planned budget by completion.A value of 0 for VAC indicates that by project completion all of the planned budget will be used.A positive VAC indicates the project will not fully use all of the planned budget by completion.The VAC formula is a simple subtraction formula resulting in a monetary value. Understanding VAC includes the definition, the connection to other earned value tools, the formula, and the calculation of it. VAC ( Variance at Completion): The expected final Cost Variance (CV) assuming the efficiency level experienced throughout the project thus far.TCPI ( To-Complete Performance Index): The Cost Performance Index (CPI) that must be achieved to allow the project to complete on budget.This does not include funds spent to date. ETC ( Estimate to Complete): The amount of funds necessary to finish the project.EAC ( Estimate at Completion): The final project budget.Preparation for the PMP® certification exam should be inclusive of all earned value concepts, including but not limited to the future projection terms below. Regardless of the inclusion of “PMP” in the name, the concept of variance at completion is the same and in fact, is one of twelve earned value metrics. Note some informal resources may use the terms: VAC formula PMP, VAC PMP, or Variance at Completion PMP. VARIANCE AT COMPLETIONĪ projection of the amount of budget deficit or surplus expressed as the difference between the budget at completion and the estimate at completion. The PMI’s Project Management Professional (PMP)® certification exam may include questions reflective of the official VAC definition. Within this budget and cost work, PMP credential holders know the variance at completion formula and calculation provides the expected cost overrun or underrun knowing that in advance of project completion can help manage variance to reach a successful outcome. Project managers are typically responsible for creating the original budget, managing spending during the work, requesting additional funds, identifying budget overruns, and reporting budget shortfalls.
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