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EV should always trace back to the approved budgeted costs of work which has been completed. If you are working on a fixed price contract, then it is entirely possible that AC and EV will be the same (from the customer's perspective).
The key question here is: do you need that? Just in case you need it, the PMI´s standards on the matter are really good to explain that and there are a lot of great explanations in the internet. In fact, there is not to much to add because the calculations are easy, the technique is easy and as other things the key success factor is the data you take and the method to work with it.
Kiron and Sergio both made good points.
They shouldn’t be linked. It is budgeted amount (EV) vs Actual Cost (AC) for the work actually completed.
EV you get it from your approved budget while AC you get it manually from your actual cost to the project incurred to complete this work.
Thank you for your help!
I guess where I'm stuck is on quantifying the %complete, but I'll figure it out.
And for the actual cost, do you add the margins to the internal labor costs?
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