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I have a problem with the formula of ETC.Please tell me which one of bellow formulas is correct?
1.ETC = BAC-AC
2.ETC = EAC-AC
Total planned value (PV) at the end of the project is estimted to be BAC, at the beginning of the project. As the project progresses, and we start getting better information about the project, we re-estimate the budget again, this is called estimated budget at completion, simply estimate at completion (EAC). In the midway of the project, you would have already expended some money, which is Actual cost (AC). If you would like to know the balance budget to complete (Read it as Balance to complete [ BTC ] ), you need to subtract total funds minus actual cost expended, right? so, BTC = budget to complete - actual cost. Now use this formula based on situation. If our estimate is good enough durig entire project lify cycle, you can depend on original estimte i.e. BAC. If you have revised its value to EAC, you would depend on EAC.
Balance Budget to complete (BTC) = BAC - AC (Using original estimate, since you think that it is dependable)
Estimted Budget to complete (ETC) = EAC - AC (Using re-estimted value, since project evaluation suggested you that you had to re-baseline it)