Question

The Budgeted Cost of Work Performed (BCWP) is also known as “Earned Value.” It is a terminology widely used today to represent the dollar worth of all the project work that has been completed to date. Is it correct to call this the “Earned Value”? Has it really been earned? Give your views on the terminology, giving arguments both in favor of and against it.

Answer 1

Budgeted Cost for Work Performed (BCWP) also called Earned Value (EV), is the budgeted cost of work that has actually been performed in carrying out a scheduled task during a specific time period. The BCWP is the sum of the budgets for completed work packages and completed portions of open work packages, plus the applicable portion of the budgets for level of effort and apportioned effort. so we can say it is earned value. Yes, it is really earned.in my view, the terminology is correct because actually what we perform will be measured as the budgeted cost of work performed and earned the value of work performed. We can also argue that the budgeted amount performed may not be equal to the actual amount earned, then we can not say both the terms are same.