How To Calculate BCWP
Working with a budget for a project can be a daunting task. Unless you are a seasoned veteran used to working under a budget with trusted suppliers who'll provide you with grade-A material at cost, you can be put in a bind when the managers come and audit your books.
The best way to keep track of your project status is to compute for BCWP or Budgeted Cost of Work Performed. Basically this measures how much has been budgeted for the amount of work done on a project. Often used in construction it can also be used in evaluating the progress of any project that works with a budget. A much less complicated name for BCWP is Earned Value. Look up either name online and you'll come across pretty much an identical set of computations but with different names for the plug in values.
