The portion of the projected costs that has been earned as a result of the work planned thus far is known as the budgeted cost or earned value.
What is an Earned Value (EV)?
The third and final component of earned value management is this. The worth of the labour that has already been done is known as earned value. Earned Value will show you the value that the project has generated even if it is terminated right now.
Despite the fact that each of the three components is important in its own right, Earned Value is the most helpful because it demonstrates how much value you have so far generated from your spending. Another name for earned value is the budgeted cost of work completed (BCWP).
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