You have a small project for a period of five months. Your budget amount for each month is spread evenly and is $1000 per month. The first month actual expense is $800 and there is a commitment for $600. Now you generate a forecast at the beginning of the second month. Identify the monthly Estimate-To-Complete (ETC) amount that the application would calculate for the remaining four periods, when the ETC generation method includes commitments. (Choose the best answer.)
The project has a total budget of $5000 for five months, which means $1000 per month. The first month's actual expense is $800 with an additional commitment of $600, totaling $1400. This leaves $3600 for the remaining four months. Dividing this amount by the four remaining months results in an Estimate-To-Complete (ETC) amount of $900 per month.
BUDGET FOR 5 MONTHS = 5000 USED IN 1ST MONTH = 1400 REMAINING = 5000 - 1400 = 3600 ETC FOR 4 MONTHS = 3600 / 4 = 900
Answer is B