The budgeted cost of work performed (BCWP) is a widely used project management tool that is more generally referred to as and addressed as earned value.
The budgeted cost of work performed is the cost of work completed in completing a scheduled task within a certain time frame. It’s a useful tool since it allows project managers and businesses to see how they’re doing in comparison to the work that was planned.
If your BCWP calculations return a ‘negative’ result, the firm or project manager will search for solutions to get the project right back on track. If your BCWP yields positive results, the team will attempt to keep going forward as planned.
Earned value metrics and budgeted cost of work performed to have a comparable set of ‘measures.’
A project manager employing this framework will collaborate closely with the budgeted cost of work scheduled (BCWS), and the actual cost of work performed (ACWP), which is the same as actual costs (AC).
Also, See: Actual Cost of Work Performed(ACWP)
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