What is equation of cost variance in project cost management ?

Cost Variance (CV) is a very important factor to measure project performance. Cost Variance (CV) indicates how much over or under budget the project is. Cost Variance can be calculated using the following formula: Cost Variance (CV) = Earned Value (EV) - Actual Cost (AC) OR Cost Variance (CV) = BCWP - ACWP The formula mentioned above gives the variance in terms of cost which will indicate how less or more cost has been used to complete the work as of date. Positive Cost Variance Indicates the project is under budget. Negative Cost Variance Indicates the project is over budget. Cost Variance % Cost Variance % indicates how much over or under budget the project is in terms of percentage. Cost Variance % can be calculated using the following formula: CV % = Cost Variance (CV) / Earned Value (EV) OR CV % = CV / BCWP The formula mentioned above gives the variance in terms of percentage which will indicate how much less or more money has been used to complete the work as planned in terms of percentage. Positive Variance % indicates % under Budget. Negative Variance % indicates % over Budget.

Cost Variance (CV) = Earned Value – Actual Cost

 

Cost Variance (CV) is a very important factor to measure project performance.

Variance for cost =Standard Cost-Actual quantity-Actual Cost-Actual Quantity.

Positive Variance indicates under Budget.Negative Variance indicates over Budget.

cost variance direct material 

(actual price - standard price ) * actual quantity

direct labor (actual rate - standard rate ) * actual hours 

 

Variance for cost = Actual quantity * (Actual price - standard price) 

Efficiency variance = Standard Cost (Actual Quantity - Standard Quantity)

Cost Variance = Standard Cost * Actual Quantity - Actual Cost * Actual Quantity