Which term represents the total planned budget for the entire project?

Which term represents the total planned budget for the entire project?

• A. Time Value of Money (TVM)
• B. Budget at Completion (BAC)
• C. Return on Invested Capital
• D. Cost Model

Answer: (B)

Budget at Completion is the total approved budget for the entire project, serving as the baseline cost used to measure and control spending as work progresses. It represents the sum of all planned costs across every work package and reflects what the project is authorized to spend by completion. Time Value of Money deals with adjusting values for the passage of time, not the total project cost. Return on Invested Capital relates to profitability of an investment rather than the project’s budget. A Cost Model is a way to organize and present costs, not the single, overarching budget.

Budget at Completion is the total approved budget for the entire project, serving as the baseline cost used to measure and control spending as work progresses. It represents the sum of all planned costs across every work package and reflects what the project is authorized to spend by completion. Time Value of Money deals with adjusting values for the passage of time, not the total project cost. Return on Invested Capital relates to profitability of an investment rather than the project’s budget. A Cost Model is a way to organize and present costs, not the single, overarching budget.