Project Cost Management - PMP note

  Project Cost Management - PMP Note

Cost Variance (CV) is the difference between the amount you budget for a project and the actual amount you spend completing the project.

Earned Value (EC) is a way to measure and monitor the level of work completed on a project against the plan.

Cost performance index (CPI) is a measure of the conformance of the actual work completed (Measured by its earned value) to the actual cost incurred. CPI= EV/AC

Expected Monetary Value (EMV) looks to predict the value of risk or opportunity of an uncertain event.

EMV is a risk analysis tool that helps establish the contingency reserves for your project activities.

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