Forecasted Cost at Completion Notes: Definitions & Explanations PDF | Download eBooks

Study Forecasted Cost at Completion lecture notes PDF with project management definitions and explanation to study What is Forecasted Cost at Completion?. Study forecasted cost at completion explanation with project management terms to review project management course for online MBA programs.

Forecasted Cost at Completion Notes:

As the cost performance is tracked regularly, it can be forecasted what the actual cost will be at the end of the project or a work package. This is called forecasted cost at completion. Three methods are used to calculate forecasted cost at completion with different assumptions. The first method assumes that that the rate of efficiency is the same for both the completed work and the future work. It is calculated by dividing total budgeted cost by cost performance index. The second method assumes that the remaining work will be performed according to the budget. It is calculated by adding cumulative actual cost to the difference of total budgeted cost and cumulative earned value. The third method re-estimates the cost of the remaining work and add it to the cumulative actual cost.

Keep Learning with Project Management Notes