Cost Variance (CV) Glossary Definition

Term Cost Variance (CV)
Definition

Cost Variance (CV) is the difference between earned value and actual cost.

Context & Usage

A negative cost variance indicates that the project has spent more than the value of the work earned.

Project managers, sponsors, and project-controls staff use this concept in budget reviews, performance reporting, forecasting, and variance conversations.

Related concepts include Budget, Cost Baseline, Planned Value, Earned Value, Actual Cost and Schedule Variance.

Categories Knowledge Management and Content Governance