IT Project Management, 2nd Edition

4.5. Budget at Completion

The Budget at Completion (BAC) is the sum of the budget for each phase of your project. This is the estimated grand total of your project. If a project manager breaks down a project into phases, and she should, then each phase can be reflected with a dollar amount that needs to be allotted to that phase. The benefit of this approach is that a company does not need to allot all of the BAC at the project's conception, but rather the initial amount required to set the project in motion, and an amount as each phase is completed.

The primary advantage of this approach is that an entity can continue to use the capital earmarked for the project until the next phase of the project is ready to proceed. A secondary advantage ...