Essential Mathematical Formulas for PMP Certification Test
A = B + C
Example
Assume you’re working on a home improvement project, and one of the chores is to paint the walls. You calculated that the painting would cost $500 in paint, brushes, and labor.
However, as the painting develops, you record the real costs:
– $400 for paint and materials
– Labor charges: $300
So the real cost of doing the painting operation is:[ACWP = Paint + Materials + Labor = $400 + $300 = $700]
As a result, the Actual Cost of Work Performed (ACWP) for this painting operation is $700. It indicates the actual costs you incurred to finish that portion of the project. ACWP assists project managers in tracking actual costs vs planned or budgeted expenditures to see whether they are spending more or less than expected.
