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Difference Between Earned Value And Actual Cost RRS feed

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  • All these fields for earned value method (EVM) are defined in Project's help. Also written about in books. Try reading http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html for a quick summary. More articles can be found via Internet search.

    --rms www.rmschneider.com

    Monday, April 27, 2015 8:02 PM
  • Actual cost is the cost of an item in time.  Earned value is the sum of the actual cost(s). 

    Here's an example from a real project, showing daily values.


    Ben Howard [MVP] | web | blog | book | P2O

    Monday, April 27, 2015 9:17 PM
    Moderator
  • Ben,

    I'm not an expert in Earned Value Method, but isn't Earned Value the sum of the actual "budget" of work completed?  It's not related to actual costs except that the hope in a project is that at any point in a project the actual cost is cost to the earned value? One doesn't want to "actually" pay more for something than its "value".


    --rms www.rmschneider.com

    Tuesday, April 28, 2015 4:45 AM
  • Rob, you're right.  EV is Budgeted Cost of Work Performed.  AC is the Actual Cost of Work Performed.  MSProject also uses an Actual Cost field, which is what I also showed in the image.  Thanks for putting me right.

    Ben Howard [MVP] | web | blog | book | P2O

    Tuesday, April 28, 2015 5:52 AM
    Moderator
  • EVM is something that needs a complete explanation and is fully documented elsewhere; hence, I resisted the risk of giving the wrong answer and instead tried to explain it here with an answer to teach the idea of how to find such already-documented information. "Read a book" is frequently a good answer. 

    --rms www.rmschneider.com


    • Edited by Rob Schneider Tuesday, April 28, 2015 5:57 AM original made no sense. thick fingers
    Tuesday, April 28, 2015 5:57 AM