PMP® Study Notes

Project Cost Management


BAC – Budget at Completion (How much at initial planned)

EVM - Earned Value Management

PV - Planned Value

EV - Earned Value (Budgeted Cost of the Work Performed (BCWP))

AC - Actual Cost (Actual Cost of Work Performed (ACWP))

CV - Cost Variance

SV - Schedule Variance

CPI - Cost Performance Index

SPI - Schedule Performance Index

EAC - Estimate at Completion

ETC - Estimate To Complete (When the project starts, the EAC is equal to the ETC. As the project progresses, the ETC decreases; in the end, it becomes zero

VAC - Variance at Completion

TCPI - To Complete Performance Index

Analogous estimating - Uses the values of parameters such as scope, cost, budget, and duration from a previous similar activity as the basis of activity.

Parametric estimating - Use benchmarking. Require pass experience. Top-down. Statistical estimation use pass data.

Three-point estimate - estimate (PERT – Program Evaluation and Review Technique) Use benchmarking

Bottom-up Estimating - Use pass experience. control the cost at the work package level