What is schedule variance?
Similarly, what is schedule variance and cost variance?
Cost variance shows deviation of spent cost and the expected cost. Schedule variance shows the deviation in time consumed and the estimated time. Cost variance is the difference of earned value and actual cost. Schedule variance is the difference of earned value and planned value. CV = EV - AC.
Similarly, what does it mean if schedule variance is negative? A positive schedule variance means the project is ahead of schedule, while a negative schedule variance means that a project is behind schedule. A value of zero indicates that a project is going as planned and on schedule. Let's see these formulas in action.
Similarly, what is variance cost?
A cost variance is the difference between the cost actually incurred and the budgeted or planned amount of cost that should have been incurred. These variances form a standard part of many management reporting systems.
What is cost variance in project management?
It is a process of evaluating the financial performance of your project. Cost variance compares your budget set before the project started and what was actually spent. This is calculated by finding the difference between BCWP (Budgeted Cost of Work Performed) and ACWP (Actual Cost of Work Performed).