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Differences Between ETC and EAC, Essay Example

Pages: 1

Words: 150

Essay

ETC is the estimate to complete which is the estimated cost required to complete the project being measured.  ETC is used to calculate the EAC.  EAC or Estimate at completion is the estimated cost of the project at the very end of the project.  The difference between the two is that ETC is the remaining estimate to complete and EAC is the estimate at completion.  The implication to project management is the understanding that there is a certain cost to complete the project as well as the cost at the end of the project.  With ETC, there are already sunk cost so to provide management with  a clear understanding of what it will cost to complete a project ETC can provide that picture.  When evaluating variations, estimates, overruns, shortages or other project management risks, EAC can provide a picture of what the project incurred regarding cost for the overall project.

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