Essential Mathematical Formulas for PMP Certification Test
A = B + C
Example
Assume you’re in charge of a home repair project and want to repaint your house. You anticipated the overall cost of the painting job to be $2,000, and you expected to complete half of the painting work by the end of the first week.
– Total cost of the painting project: $2,000
– Estimated cost for work due by the end of the first week: $1,000
This $1,000 reflects the BCWS, or Budgeted Cost of Scheduled Work. 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.
BCWS 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 $1,000 you budgeted (BCWS), it shows that the project is on track for that specific time according to the intended schedule and budget.
