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PMP Exam Cram™ 2 by Greg Horine, David Francis

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Using Earned Value Management

Earned Value Management is a good method for identifying schedule and cost variances. Table 7.1 summarizes the key elements of Earned Value Management.

Table 7.1. Elements of Earned Value Management
ElementDefinition
Planned valuePreviously known as budgeted cost of work scheduled (BCWS). This involves an estimation of how much a project will cost before it occurs.
Earned valuePreviously known as budgeted cost of work performed (BCWP). This is the actual physical work that is accomplished and includes an estimate of how much the work is valued at.
Actual costsPreviously known as actual cost of work performed (ACWP). This calculation includes the total expenditures for the project.
Cost variance (CV)The comparison between ...

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