What is the difference between estimated and projected

What is a projection? A projection indicates what the future changes in a population would be if the assumptions about future trends actually occur. These assumptions are often based on patterns of change which have previously occurred. For example: Data collected about the total number of store locations for a retail chain over three years show an increase from 8 stores in first year, to 12 stores in the second year, to 18 stores in the third year.

A projection is not making a prediction or forecast about what is going to happen, it is indicating what would happen if the assumptions which underpin the projection actually occur.

Comparison of Projections and Forecasts. While both involve analysis of data, the key difference between a forecast and a projection is the nature of the assertion in relation to the assumptions occurring. Comparison of Projections and Forecasts Type of Information. Nature of Assumptions. Projections indicate what future values for the population would be if the assumed patterns of change were to occur.

The current estimate not the original estimate is used throughout Spectrum on reports and inquiry screens. The non-projected formats of the Contract Status Report compare current revised estimates with actual costs. Many of the Job Cost reports have the option of printing either with or without projected costs. The user should carefully examine Sample Reports section of the online Help to determine which format best meets the company's needs. The Projected cost refers to the amount that a job is likely to cost upon completion, based on actual costs at any given point.

A worksheet may be printed and given to the project manager for completion so that projected costs are routinely updated. Projected cost is the predicted total cost of a job or Phase at the time of completion. In the percentage of completion accounting method, the projected cost is used in the calculation of earned revenue.

The projected formats of the Contract Status reports provide date-sensitive financial information for both projected costs and change order amounts. This is achieved by storing, by period, the change in the projected cost of a job during the Projected Cost Update and other screens affecting project cost. By storing these figures on a period-by-period basis, it is possible to backdate the projected formats of the Contract Status Report to present statements of contract status at various points in time.

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