What does the Budget at Completion (BAC) represent?

The Budget at Completion (BAC) represents the sum of all budgets for work to be performed on a project. It is a key measure in project management that indicates the total planned budget for the entire project upon its completion. Understanding BAC is crucial because it serves as a baseline for measuring project performance throughout its lifecycle.

By establishing the BAC, project managers can assess the budgeted costs against actual performance, enabling them to evaluate whether the project is progressing as planned. This helps in forecasting and managing financial resources efficiently, ensuring stakeholders have a clear understanding of the overall financial commitments involved in the project.

The other choices do not accurately capture the essence of BAC. For instance, the cumulative cost of all work completed refers to the earned value, while the total expected cost to be spent may imply a forecast that could be different from the original budget. Lastly, while the overall project budget approved by stakeholders is related, it does not specifically define BAC, which focuses explicitly on the sum of budgets for future work rather than total costs or approvals.