What is the formula for calculating PCIC?

The correct approach to calculating PCIC (Performance Cost Index) is indeed represented by the formula that effectively measures the efficiency of spending on a project. This is derived from comparing the actual costs incurred to the earned value at a given point in time, which gauges how the project is performing in terms of cost.

Using the formula PCIC = AC / EAC, where AC stands for Actual Cost and EAC is the Estimate at Completion, allows project managers to assess how much the project is expected to cost versus how much has already been spent.

This formula is critical for understanding the cost performance of the project, as it provides insight into whether the project is on track financially. A PCIC value less than one would indicate that actual costs are exceeding expected costs, suggesting the need for corrective actions to control expenses.

In this context, it is essential to use the accurate terms and definitions to apply these concepts understandably within project management and HR analytics. The other formulas are related to different indices or measures and do not specifically depict the cost performance against estimates, which is what PCIC aims to calculate.