48260 Project Management Definitions and Formulae

Candidates may find the following definitions and formulae

useful in attempting the examination questions

 PV (BCWS) – Budgeted Cost of Work Scheduled

 EV (BCWP) – Budgeted Cost of Work Performed
 AC (ACWP) – Actual Cost of Work Performed
 SV – Schedule Variance = EV-PV or BCWP-BCWS
 CV – Cost Variance = EV-AC or BCWP-ACWP
 SPI – Schedule Performance Index =EV or BCWP
PV BCWS
 CPI – Cost Performance Index = EV or BCWP
AC ACWP
 BAC – Budget Baseline Cost at Completion
 EAC – Estimated costs at completion includes
costs to date plus revised costs for work remaining
 ETC – Estimated Cost to Complete
= Work remaining
CPI

= (BAC-EV)
EV/AC

 FAC – Forecast Total Costs at Completion

= AC+ETC
 VAC – Variance at Completion
= BAC-FAC or BAC-EAC

 te = a+4m+b
6
 Variance = δ ² = [(b – a)/6]²

 Z = (Ts-Te)/sq. rt. of the sum of the variances on the critical

path

 Cost Slope=Cc-Cn
Tn-Tc