Earned Value, also known by the 2 letter anagram EV, refers to the precise and specific value of all sum total of completed project work to date. These earned values are expressed in terms of a budget that has been formulated previously, has been reviewed, and has been approved, and has in turn been assigned to this particular work element by a particular work breakdown structure component or in some cases by a specific schedule activity. The term earned value can also be referred to by the alternative term of budgeted cost of work performed, which in turn is also often referred to by the 4 letter anagram BCWP. Keeping a careful tab on the earned values within the particular components of a project is essential for those who are maintaining the budget of a particular project, or else the numbers may not accurately represent the reality of the situation.

This term is defined in the 3rd and the 4th edition of the PMBOK.

Related Entries:

 

  • Earned Value Technique  Earned Value Technique which refers specifically to the specific technique in which the actual values of the work related...
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  • Earned Value Management  The phrase earned value management, also known by the 4 letter anagram EVM, refers to the actual methodology of...
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  • Estimate at Completion The phrase estimate at completion, which can also be referred to by the three letter anagram EAC, is an input...
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  • Budget at Completion The phrase budget at completion (often referred to as BAC) refers to the sum of all budget values that have...
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  • Planned Value In regards to project management areas, the term of planned value (also known by the two letter abbreviation of PV)...