1. What is EVM Cost Variance?

Cost Variance (CV) is an earned value management (EVM) metric that measures the difference between the earned value (EV) and actual cost (AC) of a project. It indicates whether a project is under or over budget.

2. How Does the Calculator Work?

The calculator uses the EVM cost variance formula:

Where:

• \( EV \) — Earned Value (USD)
• \( AC \) — Actual Cost (USD)

Interpretation:

• Positive CV: Project is under budget
• Zero CV: Project is on budget
• Negative CV: Project is over budget

3. Importance of Cost Variance

Details: Cost Variance is a key performance indicator that helps project managers track financial performance and make necessary adjustments to keep projects on budget.

4. Using the Calculator

Tips: Enter both EV and AC in USD. Values must be non-negative. The calculator will compute the difference between these two values.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between Cost Variance and Schedule Variance?
A: Cost Variance (CV = EV - AC) measures budget performance, while Schedule Variance (SV = EV - PV) measures schedule performance.

Q2: What is a good Cost Variance value?
A: Ideally, CV should be zero or positive. Negative CV indicates cost overruns that may require corrective action.

Q3: How often should Cost Variance be calculated?
A: Typically calculated during regular project status meetings, often weekly or monthly depending on project duration.

Q4: Can Cost Variance be used alone to assess project health?
A: No, it should be used with other EVM metrics like Schedule Variance and CPI for comprehensive project assessment.

Q5: What if my Actual Cost is zero?
A: This would suggest no costs have been incurred yet, which may indicate either very early project stage or data collection issues.