Cost Variance: Definition, Formula and Examples | Indeed.com

Cost variance is the difference between the amount you budget for a project and the actual amount you spend completing the project. The ... FindjobsCompanyreviewsFindsalariesUploadyourresumeSigninSigninEmployers/PostJobStartofmaincontent 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lueis$500andtheactualcostis$600.Youwouldcalculatethecostvariancelikethis:Costvariance=$500-$600Costvariance=-$100Ifyouwanttoexpressthecostvarianceasapercentage,youwouldcalculateitlikethis:Costvariance%=($500-$600)/$500Costvariance%=-$100/$500Costvariance%=-20%Example2Youareaprojectmanagerandhave12monthstocompleteaprojectwithabudgetof$50,000.Aftersixmonths,youhavespent$30,000,however,only40%oftheprojectiscomplete.Youusethecostvarianceformulatofigureoutifyouareoverorunderbudgetatthispointintime.Theactualcostis$30,000andtheearnedvalueis40%of$50,000or$20,000.Youwouldcalculatethecostvariancelikethis:Costvariance=$20,000-$30,000Costvariance=-$10,000Soatthispointwith40%oftheprojectcompleted,youareoverbudgetby$10,000.RelatedArticlesTipsforSharingaWorkspaceWithHousematesWhatIsaCommunicationStrategy?(WithDefinitionandTemplate)16MajorsThatDoNotRelyonMath