There is a simple formula that ties the EAC and ETC together:
The actual cost to date is obtained right off the P&L. However, the ETC is somewhat problematic. There are three ways to calculate ETC:
■ Apply the earned value formula: ETC = PVremaining * ACto date/EVto date
■ Re-estimate the ETC and then rebaseline the remaining planned value as described elsewhere
Of course, all three methods will provide a different answer. Which to use is a decision to be made by the project manager considering the situation of the project.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.