Cost Variance (CV) measures the variance between the earned value (EV) and actual cost (AC) incurred on the project. It provides insights into whether the project is over or under budget at a given point in time. A positive CV indicates that the project is under budget, while a negative CV suggests cost overruns. CV is an essential indicator for cost control and forecasting.
Calculation: CV = EV - AC
Make sure you never miss out! Sign up to our monthly newsletter to keep up with the biggest news stories in construction and the latest Raildiary updates. Full of our latest case studies, blogs and fun quizzes!