In earned value management, which metric represents the actual cost of work performed?

In earned value management, which metric represents the actual cost of work performed?

• A. Budget at Completion (BAC)
• B. Budgeted Cost for the Work Performed (BCWP)
• C. Actual Cost of Work Performed (ACWP)
• D. Budgeted Cost for the Work Schedule (BCWS)

Answer: (C)

In earned value management, you track what was planned, what was completed, and what was actually spent. The metric that reflects the money spent to perform the work is the actual cost of work performed. That value shows the real cost incurred to complete the work, regardless of what was planned or what value the work represents. For context, the total budget for the project is the budget at completion. The budgeted cost for the work performed is the earned value—the budgeted amount tied to the work that has actually been completed. The budgeted cost for the work scheduled is the planned value—the budgeted amount for the work you planned to have done by a given date. So the one that represents actual spending to perform the work is the actual cost of work performed, which is the measure used to compute cost variances and the cost performance index. For example, if you completed work valued at 130k in budget terms but actually spent 150k, ACWP is 150k, showing cost overrun.

In earned value management, you track what was planned, what was completed, and what was actually spent. The metric that reflects the money spent to perform the work is the actual cost of work performed. That value shows the real cost incurred to complete the work, regardless of what was planned or what value the work represents.

For context, the total budget for the project is the budget at completion. The budgeted cost for the work performed is the earned value—the budgeted amount tied to the work that has actually been completed. The budgeted cost for the work scheduled is the planned value—the budgeted amount for the work you planned to have done by a given date. So the one that represents actual spending to perform the work is the actual cost of work performed, which is the measure used to compute cost variances and the cost performance index. For example, if you completed work valued at 130k in budget terms but actually spent 150k, ACWP is 150k, showing cost overrun.