| Term | Abbrev. | Description | Formula |
| Budget at Completion | BAC | Budget at Completion represents the total budget for the entire project. It is also known as the baseline cost. | N/A |
| Earned Value | EV | The earned value is the budget for the completed work. It also can either be monthly or cumulative. Monthly EV represents the amount of work completed during a month.On the other hand, cumulative EV represents the amount of work completed to date. | N/A |
| Planned value | PV | The planned value is the budget for work scheduled to be completed. It can be either monthly or cumulative. As a monthly amount, it represents the amount of work scheduled to be completed to date. | N/A |
| Actual cost | AC | The Actual Cost is the actual cost incurred in accomplishing the work within a given time period. This includes both direct and indirect costs. | N/A |
| Cost Variance | CV | Cost Varaince is the numerical difference between the earned value and the actual cost at the reporting point. A negative variance indicates that the project is in a poor position. On the other hand the project is doing well when the variance is positive. | EV-AC |
| Cost Performance Index | CPI | The Cost Performance Index is used to measure the budgeted cost of completed work against the actual cost. A CPI less than one indicates an unfavourable cost variance. For example, a CPI of SEK0.85 would mean that, for every SEK spent, SEK0.85 of work has been completed. This indicates that the project is over budget or vice versa when equal to one. | EV/AC |
| The To-Complete Performance Index (Budget at Completion) | TCPI(BAC)
| This is used to indicate the level of cost perfromance that will be necessary to complete the project witthin budget from the report point. It also measures the budget for the remaining work (BAC-EV) over the estimated cost to acheive the Estimate at Completion (EAC-AC). The cummulative Cost Performance Index does not change by more than 10% from its value at 20% completion point. Thus, when CPI is significantly higher than the TCPI, it is highly doubtful that the project will be completed at the Estimate at Completion (EAC).
| (BAC-EV)/(BAC-AC) |
| Schedule Variance | SV | Schedule variance is the numerical difference between the earned value and the plannned cost at the reporting date. A negative variance indicates the good performance of the project, whiles a negative variance indicates the poor performance of the project. | EV-PV |
| Schedule Performance Index | SPI | The Schedule perfromance Index measures whether the project is behind or ahead of plan. An SPI less than 1.0 indicates that the prois behind schedule. On the contrary, an SPI more than 1.0 indicates that the project is moving ahead of schedule. An SPI equal to 1.0 indicates that the project is exactly on schedule. For example, an SPI of 0.65 means that for every single unit of money scheduled to be acheived, only SEK0.65 was acheived. This would indicate a poor schedule performance. | EV/PV |
| The To-Complete Performance for Schedule (Ordinary time) | TCPI(OD) | This formular is used to indicate the level of schedule performance required to to finish on time from the report date. | (BAC-EV)/(BAC-PV) |
| Estimate to Completion | ETC | The Estimate to Completion measures the expected additional costs needed to complete the project from the report point. | EAC-AC |
| Estimate at Completion | EAC | Estimate at Completion shows the total scheduled, or project, cost for a task. Based on costs already incurred for work performed by all resources assigned to the task, in addition to the costs planned for the remaining work for the assignment. | AC+(BAC-EV)/CPI |
| Cost Schedule Index | CSI | The Cost Schedule Index determines the continuability a a project. The further a project's CSI is less than 1.0 the more difficult it is for the project to be recovered. | SPI*CPI |
| Variance at Completion | VAC
| Variance at Completion is the difference between the Budget at Completion (BAC) and the Estimate at Completion (EAC). An adverse VAC shows poor project performance.Typical causes of adverse varaince includes poor initial planning or budgeting, changes to the project's scope, changes in technology relate to the project, changes to the delivery schedule, changes to labour contracts, changes to material costs, inflation, and measurement error. inaccurate indirect cost allocation could also contribute to cost variances. | BAC–EAC |
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