Cost Variance

Cost Variance

Cost Variance Jonathan Poland

Cost variance (CV) is a project management metric that measures the difference between the budgeted cost of a project and the actual cost. It is calculated by subtracting the budgeted cost from the actual cost, and is expressed as a percentage of the budgeted cost.

For example, if the budgeted cost of a project is $100,000 and the actual cost is $110,000, the cost variance would be calculated as follows:

CV = Actual Cost – Budgeted Cost = $110,000 – $100,000 = $10,000

CV = $10,000 / $100,000 = 10%

A positive cost variance indicates that the project is over budget, while a negative cost variance indicates that the project is under budget.

Cost variance is an important metric for project managers and stakeholders to track, as it provides insight into the efficiency of project cost management and the likelihood of the project being completed within budget. By monitoring cost variance, project managers can identify and address any cost overruns or inefficiencies early in the project, which can help to minimize the impact of these issues and improve the chances of project success.

Learn More
Customer Experience 101 Jonathan Poland

Customer Experience 101

Customer experience (CX) refers to the overall experience that a customer has with a company or brand, from their initial…

Infrastructure Risk Jonathan Poland

Infrastructure Risk

Infrastructure risk refers to the potential negative consequences that a business may face as a result of failures in core…

Technology Risk Jonathan Poland

Technology Risk

Technology risk refers to the risk that technology shortcomings may result in losses for a business. This can include the…

Exit Strategy Jonathan Poland

Exit Strategy

An exit strategy is a plan for how to end a business venture, investment, or project. It is a way…

Brand Legacy Jonathan Poland

Brand Legacy

Brand legacy refers to the strong association that a brand has with a particular product or service. A brand with…

Veblen Goods Jonathan Poland

Veblen Goods

Veblen goods are a type of consumer good that is perceived as being more valuable or desirable because of its…

Keep It Super Simple Jonathan Poland

Keep It Super Simple

Keep it Super Simple or Keep it Simple Stupid. The KISS principle is a design guideline that suggests that unnecessary…

Competitive Intelligence Jonathan Poland

Competitive Intelligence

Competitive intelligence is the process of collecting and analyzing information about competitors, markets, industries, products, and customers in order to…

Companies Likely to Aquire Federal Funding 150 150 Jonathan Poland

Companies Likely to Aquire Federal Funding

While the specific industries receiving federal funding can vary depending on the country and its government priorities, there are several…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Risk Management 101 Jonathan Poland

Risk Management 101

Risk management is the process of identifying, assessing, and mitigating potential risks to an organization’s assets, operations, and reputation. It…

User Intent Jonathan Poland

User Intent

User intent refers to the goal or objective that a person has in mind at a given moment. Modeling user…

Risk Management Process Jonathan Poland

Risk Management Process

Risk management is the practice of identifying and mitigating potential risks that could result in financial losses or other negative…

Autonomous System Jonathan Poland

Autonomous System

An autonomous system is a system that is capable of functioning independently, without the need for human intervention. Autonomous systems…

Community Problems Jonathan Poland

Community Problems

Community problems are local issues that can only be effectively addressed by involving the people who live in the affected…

Sales Objections Jonathan Poland

Sales Objections

A sales objection is a concern or hesitation that a customer has about making a purchase. Identifying and addressing these…

Channel Management Jonathan Poland

Channel Management

Channel management refers to the process of coordinating and optimizing the distribution channels that a company uses to bring its…

Intangible Assets Jonathan Poland

Intangible Assets

Intangible assets are non-physical assets that have monetary value and are expected to generate economic benefits for an organization. They…

Types of Fallacies Jonathan Poland

Types of Fallacies

A fallacy is an error in reasoning that can lead to an incorrect conclusion. Fallacies can be found in arguments,…