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Project Management & Agile · Foundational

Cost Variance (CV)

The amount of budget deficit or surplus at a point in time: CV = EV - AC.

Definition

Negative CV means over budget; positive means under budget. At project end CV equals BAC minus final AC.

Example

EV $30k, AC $36k: CV = -$6k (over budget).

Exam tip

Negative is bad for all EVM variances.

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