Question

the success of a project is measured by the extent to which the project objectives have been met. for the project to ensure that there is earned value (EV). the earned value method (EVM) is used. it's of greatest importance that the cost estimate and the schedule are correct and that they align.
2.1 there are a few parameters that form the babes of the EV notion. list the items and provide the acronyms for each.

Answer 1

The items that form the basis of the EV notion and their acronyms are:

• Planned Value (PV) or the Budgeted cost for work scheduled (BCWS)- describes how much of the work should be completed at a given point of time
• Earned Value (EV) or the Budgeted cost for work performed (BCWP)- quantifies the work done till date
• Budget at completion (BAC)- the sum of the budgets allocated to the scope of the project
• Actual cost of work performed (ACWP)- tells the costs incurred while executing the project
• Estimate at completion (EAC) -is the cumulative actual cost of work performed till date plus the estimate to complete the remaining work.
• Cost variance (CV) is the difference between the earned value and actual cost. A result greater than 0 is favourable, a result of less than 0 is unfavourable.
• Schedule variance (SV) is the difference between the earned value and planned value A result greater than 0 is favourable (, a result less than 0 is unfavourable.
• Variance at completion (VAC) is the difference between BAC and EAC. A result greater than 0 is favourable, a result of less than 0 is unfavourable.