If BAC is Cost Baseline, what is Cost Budget? Saving Changes...
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Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos 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. Saving Changes...
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. Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, 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.
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. Saving Changes...
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