# Shared Flashcard Set

## Details

Cost Management Equations
from Andy Crowe's 'The PMP Exam'
13
Management
Professional
06/20/2012

Term
 Budgeted At Completion (BAC)
Definition
 How much was originally planned for this project to costNo formula - derived by looking at the total budgeted cost for the project
Term
 Planned Value (PV or BCWS)(aka Budgeted Cost of Work Scheduled)
Definition
 How much work should have been completed at a point in time based on the plan. Derived by measuring planned work completed at a point in time.PV = Planned % Complete x BAC
Term
 Earned Value (EV or BCWP)(aka Budgeted Cost of Work Performed)
Definition
 How much work was actually completed during a given period of time. Derived by measuring actual work completed at a point in the schedule.EV = Actual % Complete x BAC
Term
 Actual Cost (AC or ACWP)(aka Actual Cost of Work Performed)
Definition
 The money spent during a given period of time.Sum of the costs for the given period of time.
Term
 Cost Variance (CV)
Definition
 The difference between what we expected to spend and what was actually spent.CV = EV - AC
Term
 Schedule Variance (SV)
Definition
 The difference between where we planned to be in the schedule and where we are in the scheduleSV = EV - PV
Term
 Cost Performance Index (CPI)
Definition
 The rate at which the project performance is meeting cost expectations during a given period of time.CPI = EV / AC
Term
 Cumulative CPI (CPIc)
Definition
 The rate at which the proejct performance is meeting cost expectations from the beginning up to a point in time. CPIc is also used to forecast the project's costs at completion.CPIc = EVc / ACc
Term
 Schedule Performance Index (SPI)
Definition
 The rate at which the project performance is meeting schedule expectations up to a point in time.SPI = EV / PV
Term
 Estimate At Completion (EAC)
Definition
 Projecting the total cost at completion based on project performance up to a point in time.EAC = BAC / CPIc
Term
 Estimate To Completion (ETC)
Definition
 Projecting how much more will be spent on the project, based on past performance.ETC = EAC - AC
Term
 Variance At Completion (VAC)
Definition
 The difference between what was budgeted and what will actually be spent.VAC = BAC - EAC
Term
 To-Complete Performance Index (TCPIc)
Definition
 Performance that must be achieved in order to meet financial or schedule goals.TCPIc = (BAC - EV) / Remaining Funds
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