What is Cost Variance (CV)?
What is Schedule Variance (SV)?
Kailash Behera, MBA, PRINCE2®, PMP® Answered question November 24, 2023
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In project management, Cost Variance (CV) is the difference between what you anticipated to spend and what you actually spent on a project. If you budgeted $100 for a party and ended up spending $80, you have a positive cost variance of $20. In layman’s terms, Cost Variance tells you if you’re under or over budget. If it’s positive, it means you spent less than you intended, which is typically a good thing. If it’s negative, it suggests you’ve spent more than intended and may need to make some changes to get back on track financially. It’s a means to keep track of your project’s expenditure and ensure you’re neither overpaying or underspending in comparison to your budget.
Kailash Behera, MBA, PRINCE2®, PMP® Answered question November 24, 2023
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