technology project. The budgeted cost is shown within the schedule
bar for each activity. For the sake of simplicity, assume costs are
distributed evenly throughout an activity’s duration. For example,
Activity A will take four weeks and has a total budgeted cost of
$4,000. Consequently, expected expenditures for A will be $1,000
per week. In contrast, Activity B will cost $2,000 per week.
Precedence relationships are as follows: A must precede B and C, B
and C must precede D.
- The Figure Below Depicts The Schedule For A Small Information Technology Project The Budgeted Cost Is Shown Within The 1 (22.26 KiB) Viewed 56 times
For example, if A took five weeks and cost $5,000, the incremental
cost would be $1,000 per week. Earned value accumulates linearly as
follows: A is valued at $4,000 and took 5 weeks, so EV for A
accumulated at a rate of 20 percent per week or $800 per week.
Week Activity A: $4,000 1 2 3 st Activity B: $8,000 Activity C: $4,000 5 6 7 Activity D: $3.000 8 9 10 11