What is the formula for percent complete using the Cost Ratio method?

What is the formula for percent complete using the Cost Ratio method?

• A. Percent Complete = Actual Cost or Work Hours to Date / Estimated at Completion.
• B. Percent Complete = Budgeted Cost / Actual Cost.
• C. Percent Complete = Time elapsed / Total time.
• D. Percent Complete = Tasks completed / Total tasks.

Answer: (A)

In cost-based progress measurement, completion is tied to how much of the forecasted total cost has been spent. The Cost Ratio method uses the ratio of actual cost incurred to date to the estimated total cost at completion. So you measure percent complete as Actual Cost to Date divided by Estimated at Completion. For example, if you’ve spent 40 units of currency and the project is forecast to cost 100, you’re 40% complete by this method. This approach assumes progress correlates with cost consumed, making it a straightforward way to reflect how much of the budget the work has used. The other options don’t fit this method: budgeting versus actual costs yields a cost-variance-like metric, not a percent of work completed; time-based or task-based measures reflect schedule or scope, not how much of the total cost has been expended.

In cost-based progress measurement, completion is tied to how much of the forecasted total cost has been spent. The Cost Ratio method uses the ratio of actual cost incurred to date to the estimated total cost at completion. So you measure percent complete as Actual Cost to Date divided by Estimated at Completion. For example, if you’ve spent 40 units of currency and the project is forecast to cost 100, you’re 40% complete by this method. This approach assumes progress correlates with cost consumed, making it a straightforward way to reflect how much of the budget the work has used.

The other options don’t fit this method: budgeting versus actual costs yields a cost-variance-like metric, not a percent of work completed; time-based or task-based measures reflect schedule or scope, not how much of the total cost has been expended.