Earned Value Definitions
Cost Variance (CV)

What is Cost Variance (CV)? Earned Value Management explained.


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

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