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Project Management & Agile · Foundational

Variance Analysis

Technique for determining the cause and degree of difference between baseline and actual performance.

Definition

Used in controlling scope, schedule, cost, and other areas; it informs corrective or preventive actions.

Example

Analyzing why actual cost exceeded plan by $30k reveals higher contractor rates.

Exam tip

Variance analysis looks at the past; trend analysis forecasts the future.

Related terms