EARNED VALUE

Earned value is evaluating project performance via the relationships between cost and schedule. It uses three variables to evaluate performance:

  • image budgeted cost for work scheduled (BCWS)
  • image budgeted cost for work performed (BCWP)
  • image actual cost for work performed (ACWP).

These three variables are used to calculate cost variance (CV) and schedule variance (SV).

The cost variance is calculated using this formula:

CV = BCWP – ACWP

The schedule ...

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