As part of a construction project, the project manager analyzes various factors affecting operational costs. The manager calculates the Final Cost Impact (FCI) using the following data. Calculate FCI and determine the budget status at completion. Analysis Factor Estimated Operational Cost (EOC) Actual Operational Cost (AOC) Material Cost Escalation $$105,000$$ $$112,000$$ Labor Cost Variability $$90,000$$ $$95,700$$
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AThe project is on track to meet the planned budget
BThe project will finish under budget by $10,000
CThe project schedule will influence the results more than costs
DThe project is currently expected to be over budget when completed
✓ Correct answer: D. The project is currently expected to be over budget when completedThe Final Cost Impact (FCI) is calculated as FCI = EOC - AOC: $$FCI = 105,000 - 112,000 + 90,000 - 95,700 = -12,700$$ The negative FCI indicates that the project is currently expected to be over budget when completed.
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