Essential Mathematical Formulas for PMP Certification Test
A = B + C
Example
Assume you’re planning a home improvement project. You expected to finish painting two rooms by the end of the first week, with a total cost of $500 for that portion of the job.
– Painting cost estimated/budgeted for the conclusion of the first week: $500
– Actual painting costs incurred by the conclusion of the first week: $400
This $500 is the BCWP, or Budgeted Cost of Work Performed. According to your project plan, it is the part of the entire project cost that was projected or planned to be spent at the end of the first week.
BCWP assists project managers in determining if the project is advancing in accordance with the budget and schedule. If the actual cost expended for the work accomplished at the end of the first week equals the $500 you budgeted (BCWP), it shows that the project is on track for that specific time according to the intended schedule and budget.
