Budgeted cost of work performed
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Budgeted Cost of Work Performed (BCWP), or "Earned Value" (EV), in project management is the budgeted cost of work that has actually been performed in carrying out a scheduled task during a specific time period[1]. The term is connected with Earned value management and here it is different from:
- Budgeted Cost of Work Scheduled (BCWS) : the approved budget that has been allocated to complete a scheduled task during a specific time period.
- Actual Cost of Work Performed (ACWP) : the actual cost that has been spent, rather than the budgeted cost.
As example of the difference assume that a schedule contains:
- a task "Test hardware" that is budgeted to cost $1000 to perform, and
- is expected to begin at the start of January 1st and
- complete at the end of January 10th.
At the end of January 5th, the work is scheduled to be 50% complete (5 days of the scheduled 10 days). So, at the end of January 5th,
- the BCWS is $1000 (the budgeted cost) times 50% (the scheduled completion percentage), or $500.
Suppose that by the end of January 5th, the work is actually only 30% complete. In this case,
- the BCWP would be $1000 (budgeted cost) times 30% (the actual completion percentage), or $300.
Also, suppose that to reach the 30% complete level at the end of January 5th, $250 was actually spent.
- Then, the ACWP would be $250.
References
- ^ Project Management Institute (1998) A Guide to the Project Management Body of Knowledge - Third Edition 2004. ISBN 1-930699-45-X
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