Click here to view image at a larger size.

Baseline Terminology
The cost baseline is a time-phased budget used to measure cost performance on the project. It can be shown either by performance period (monthly) or cumulative (“S” shaped curve). Some projects can have multiple cost or resource baselines. For example, you may want to measure internal project costs separately from external purchases of capital. The cost baseline is the basis for calculating the planned value (PV). This is essential for both cost and schedule control.