The budgeted cost of the work schedule, also known as BCWS, is defined as the planned value. It is exactly the same in principle, as it stays of the same value throughout the project at different stages. Schedules carry a lot of weight in planning project execution for companies in project-based industries. You must know that the approval schedule and the performance in accordance with that timeline dictate whether or not the company makes a profit.
A project-based company will typically allocate a certain amount of costs to each phase of work, and if phases of work run over schedule, then the budget crashes. Without a clear and accurate picture of the current state of the schedule, it’s almost inevitable that the project does not end on schedule.
BCWS = % of project complete (Planned) x Budget At Completion (BAC)
The budgeted cost of work scheduled is one of the most straightforward earned value formulas, owing to the fact that we don’t have to track or reconcile any actual field data. The budgeted cost of work scheduled is simply calculated by multiplying the overall budget of the project (or phase of work) by the quantity of work we had planned to perform at this point.
Also, See: Budgeted Cost of Work Performed (BCWP)
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