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PMP Assignment 1.1 - Budget/Cost Abbreviations

As I told you in previous assignment, I thought it will be better if I isolated the Cost/Budget related abbreviations into one.

AC - Actual cost
It is the cost realized for a specific time or period when it performed. ACWP (Actual cost of Work performed)

Thanks Kheel Center, https://www.flickr.com/photos/kheelcenter/


BAC - Budget at Completion
This also called as total planned value. This is the sum of all budgets incurred for a project.

BCWP - Budgeted Cost of Work Performed
We are going to look out many Budget related abbreviations, now this is explained as Budget which allocated for specific project which actually performed project, with the period of time called as BCWP

BCWS - Budget Cost of Work Scheduled
Is that previous abbreviation little confusy, this is to make un-complex of previous one. BCWS is the budget is allocated to schedule the project with the performance time line. Previous is for performed and BCWS is for scheduled. See the difference.

BOM - Bill of Materials
When I heard this abbreviation for first time, I thought it is Nuclear bomb. But this is different, actually more than that for projects. Not sure if this terminology used recently, this is really fascinating term, personally for me. BOM will be created to know start to end, materials, services to be acquired or brought to do the project.

CAPEX - Capital Expenditure
I didn't know the value, how this blog is useful in terms of budget and cost. But its really going well. Capital expenditure is to acquire physical fixed assets or upgrading existing assets, basically for long term usage.

COQ - Cost of Quality
This is to ensure quality of project, basically in monetary wise to analyze the acceptable and non-acceptable deliverable for the project.

CPI - Cost Performance Index
Now we are going to talk about Cost management in Project management. Cost performance index is to calculate cost efficiency of a project. It will be calculated in ratio basis, earned value to actual cost.

CV - Cost Variance
Cost variance is the true measurement of project cost on a specific project.

EV - Earned Value
Earned value is the precise and specific value of project achieved in regards to which is mentioned in Work breakdown structure and completion of Work breakdown structure.

EAC - Estimate at Completion
The estimate in regards to estimated cost vs actual cost in project.

ETC - Estimate to Completion
Estimate of the cost, which project still need to complete.

NPV - Net Present Value
Net present value is the calculation, which calculates the present value and the value adjusted in future in terms of inflation. It allows to determine, future of the project and helps with planning accordingly.

ROI - Return of Investment
Percentage which calculated to determine the financial gain of project against total project investment. This is to assess overall project's profit.

TCPI - To-Complete Project Index
TCPI is the calculation for the remaining project work and remaining budget. Also helpful to budget allocation for project completion.

TCO - Total Cost Ownership
It calculates the complete ownership of purchase, operations and maintenance through its life. It will estimates its direct and indirect it can incur.

VA - Variance Analysis
Practice of investigating the deviations between the actual and planned.

VAC - Variance at Completion
It is the estimate of calculation shows that budget at completion and estimate at completion.

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