What is Cost Variance (CV)?

The Cost Variance (CV) in project management is analogous to comparing your spending plan to what you really spent. Assume you expected to spend $100 on a project but only spent $90. The cost variation is the gap between your anticipated and actual spending. It’s great news if you spent less than you intended! You are inside your budget. However, if you spend more, there is a cost variance, indicating that you went over your budget. It allows you to keep track of the financial health of your project, whether you’re saving money or needing more than expected.