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In Module 5, you used a work breakdown structure (WBS) as the basis for estimating project costs; that is, you identified only labor costs. In this application, you will prepare a budget that includes all costs (labor and non-labor costs).

Procedure

  1. Review the details of your cost estimate from Module 5. For each element in the WBS, do the following:
    • Identify non-labor costs. These may include-but are not limited to-materials, supplies, equipment, allowances for inflation, contingency funds, and so on.
    • Find the totals of labor and non-labor costs. This is your Budgeted Cost of Work Scheduled (BCWS).

     

  2. Add the results of Step 1. This is your Budget at Completion (BAC).
  3. Prepare a graph that illustrates the project budget over time. This is the Cost Baseline.
  4. Find the total of all labor and non-labor costs. This is your Budget at Completion (BAC).

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