Cost Equations

Question 1

BAC

Answer 1

Budgeted Actual Cost

Question 2

PV

Answer 2

Planned Value

PV = Planned % complete x BAC

Question 3

EV

Answer 3

Earned Value

Actual % x BAC

Question 4

AC

Answer 4

Actual Cost

Sum of the cost for the given period

Question 5

CV

Answer 5

Cost Variance

CV = EV - AC
Cost variance = Earned Value - Actual Value
Positive is under budget, negative if over budget

Question 6

CPI

Answer 6

Cost Performance Index

CPI = EV / AC
CPI = Earned value / actual cost

> 1.0 is below budget
< 1.0 is above budget

Question 7

SV

Answer 7

Schedule Variance
SV = EV - PV
SV = Earned Value - Planned Value

Positive is ahead of schedule
Negative is behind schedule

Question 8

SPI

Answer 8

Schedule Performance Index

SPI = EV / PV
SPI = Earned value / planned value

> 1.0 is ahead of schedule
< 1.0 is behind schedule

Question 9

EAC

Answer 9

Estimate at Completion

EAC = BAC / CPI

Question 10

ETC

Answer 10

Estimate to Completion

ETC = EAC - AC

Question 11

VAC

Answer 11

Variance at Completion

VAC = BAC - EAC

Question 12

TCPI

Answer 12

To Complete Performance Index
TCPI = (BAC - EV) / (EAC - AC)
TCPI = (BAC - EV) / ETC

Question 13

EMV

Answer 13

Expected Monetary Value

EMV = Probability x Impact