2108 Cost Management Method using EVM for POC Based Revenue Recognition Project

Abstract

In a project applied Percentage of Completion (POC) based revenue recognition method in proportion to actual costs, the revenue of that project might not be recognized properly if the actual cost is far from the earned value. To avoid this issue, it is necessary to mange the cost properly and update the cost baseline at right time during the project execution. In this paper, it is considered that when the cost baseline should be updated, referring the EAC value calculated by using the EVM.