What does Earned Value (EV) represent?

Earned Value (EV) represents the Budgeted Value of the work actually performed at a given point in time. It is a key component of the Earned Value Management (EVM) methodology, which integrates project scope, time, and cost dimensions for more effective project performance assessment.

When we refer to EV, we are talking about the value of work that has been completed compared to what was planned. This allows project managers to understand how much of the budgeted work has actually been accomplished, providing an objective measure of performance rather than relying solely on subjective assessments. By using EV, one can calculate metrics such as Cost Performance Index (CPI) and Schedule Performance Index (SPI) to monitor and control project performance.

The other concepts mentioned, such as the planned budget for future work or actual costs incurred, pertain to different aspects of project management—specifically, costing and budget forecasting—but do not reflect the performance of work already completed against what was planned, which is the essence of Earned Value. Thus, the correct representation of Earned Value is the budgeted value of work actually performed.