PMP Formula: Cost Variance

PMP Formula Cost Variance

Cost variance (CV) is the amount of budget deficit or surplus at a given point in time, expressed as the difference between earned value and the actual cost. It is a measure of cost performance on a project. It is equal to the earned value (EV) minus the actual cost (AC). The cost variance at the end of the project will be the difference between the budget at completion (BAC) and the actual amount spent. The CV is particularly critical because it indicates the relationship of physical performance to the costs spent. Negative CV is often difficult for the project to recover. Equation: CV = EV - AC

Formula Definition
CV Cost Variance
  • = EV - AC

  • Cost Variance Values > 0 are considered good
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