Evaluate EV and the cost and schedule progress metrics. What would the formula look like?

Question

You are running a project to build fences around a square lot, with one side scheduled per week. Each of the sides will have a fence with an estimated labor cost of $1000, so the total project labor budget (BAC) is $4000.

At the end of week 2, Planned Value (PV) is $2000. Also, at the end of week 2, a total of $3000 in labor has been spent (Actual Cost, AC). The fence on one side of the lot is completed and a partial fence has been constructed on a second side.

What would be the effect of including $2000 in materials in the project EVM analysis if they were all delivered and paid for at the beginning? 

Answer 1

As for employment; the more the better. It'll take less time though you'll be paying the same because the work is the same.