Earned Value Terminology (continued)
The following measures are used in earned value forecasting to predict the costs at the end of the project based upon the currently available information:
Budget at Completion (BAC) is the estimated total cost of the project at completion, or what the project should cost if your planning is accurate. It answers the question, What is the baseline cost of the project? Notice that the BAC is the sum of the PV. Be aware that events sometimes occur that disrupt your plan and either decrease or increase the BAC.
Estimate to Complete (ETC) is the projected cost to complete the project from a specified point in time. It answers the question, How much will it take to finish? Establishing an ETC needs to be determined periodically after establishing a BAC. The same data, analysis, and investigation that are used to establish the BAC are required for an accurate ETC. The only differences are that the starting point for the ETC has moved forward in time and more data is probably available.
Estimate at Completion (EAC) answers the question, "What will it cost when it is finished?" Calculating the EAC requires two data points: the AC and the ETC.