Calculating and Understanding Cost Variance

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CV is the first of two basic variances that can be calculated once EV, PV and AC have been determined for an activity or project. CV is simply the Earned Value minus the Actual Costs: CV = EV−AC
If CV is negative, that means that the project work is costing more than planned. If CV is positive, then the project work is costing less than planned.

CV can be calculated for each activity, for segments of a project (for example a deliverable or sub-deliverable) or for the entire project.

#EarnedValue