Tim is BAC the same as the Cost Baseline

Discussion in 'PMP' started by Margarita Cardona, Aug 8, 2018.

  1. Margarita Cardona

    Margarita Cardona Active Member

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    Hi Tim,
    I was going over the recording for our cost session and while reviewing the graph and formulas I think that BAC and cost baseline are one and the same. Could you please validate that for me (or correct me)?. Thanks!
    Margarita
     
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  2. tim jerome

    tim jerome Well-Known Member
    Trainer

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    The answer to this is my favorite answer - yes and no (grin). It's the cost baseline of the entire project.

    The fact is, the true baseline is the entire curve - the cost across the entire project. The S-curve IS your budget, across time. It is very beneficial to think of cost in this manner - cost having a time component.

    A benefit of this model is the realization that any point on this curve is a Planned Value point, and therefore, the BAC is merely the point at the end of the curve - an important point, but a point. It is, therefore, the "Planned Value for the entire Project".
     
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  3. Margarita Cardona

    Margarita Cardona Active Member

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    Your answer is very clear and I do agree with you that is better to look at the entire S-curve rather than the end point of it (BAC). As always thank you very much for your help and I will continue to ask questions as my preparation continues as well.
    Regards,
    Margarita
     
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