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If BAC is Cost Baseline, what is Cost Budget?

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Oleg Kruk Ukraine
Hello,

If BAC is Cost Baseline, what is Cost Budget?
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
Hi Oleg. My recommendation is going to PMI´s Lexicon of Terms but mainly to the PMI´s Earned Value Management Standard. At least is what I doing when I need this type of definitions mainly because inside the EVM standard you will find examples that, in my personal opinion, help a lot to understand.
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Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
BAC is your project budget.
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Maria Hrabikova
Community Champion
Ricany U Prahy, Prague, Czechia
Hello Oleg,

Here is the link to the EVM standard:
https://www.pmi.org/pmbok-guide-standards/...alue-management

On top of that, I highly recommend you to review the discussion thread (on this platform), "Are there any good resources about setting up effectively for EVM?"

I hope it helps.
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Thomas Walenta Global Project Economy Expert Hackenheim, Germany
Hi Oleg

the BAC (budget at completion) is one component of the cost baseline or project budget.
The budget is the time-lined distribution of accumulated planned cost (e.g. per control interval), represented as a S-curve. BAC is the last point on this. A baseline is approved and used to compare actuals against it.

There is some inconsistency, as you also find a single figure as a project budget, e.g. in the Charter. This figure is in my words a budget limit. The project budget must be estimated and tweaked to be less or equal than the budget limit during project planning.

Thomas
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Elena Sandoval
BAC means Budget at Completion, which is equivalent to the total forecast budget. It is calculated as actual cost (at the cut date) plus estimated to complete (projected).
The cost budget, I never heard but could be the objective budget, such as cost without profit, only a budget for covering expenditures.
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Christine Fertl Project Management Consultant| Evsaki Corporation Geneseo, IL, United States

The Budget at Completion is the project budget (cost of work and contingency reserves), while the Cost Baseline is the BAC shown over time to show the timing of expenditures and assess against performance measures. And Cost Budget isn't a thing.

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