Cost trend analysis

Cost trend analysis is a method of controlling project costs that allows regular estimates to be made of the total cost of a project at the expected completion date. The center of the method is the determination of the completion value. The estimated value of the total costs (SGK) is calculated from the planned total costs (PGK) calculated in the project cost planning, the periodically determined actual costs (AIK) and the current completion value (AFW) of the work packages, from which the following formula can be derived: SGK= PGK (AIK/AFW). The AIK/AFW ratio represents a cost increase factor that is applied to the estimate. The determined estimated value of the total costs is graphically represented by the cost trend curve, the values of which must be commented. In addition, comments on the deviations from the planned costs are required and possible corrective measures must be attached. The estimated value of the total project costs is only a trend assumption, which assumes that the respective development will continue. (Source: GPM, Mehrmann/Wirtz)

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