Forecasted Cost at Completion Notes: Definitions & Explanations PDF | Download eBooks
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Forecasted Cost at Completion Definition:
Forecasted cost at completion (FCAC) is the forecasted total cost of the project at its completion based on the actual cost analysis.
Successful Project Management by Jack Gido and James P. Clements
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.
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