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Cost Variance (CV) = BCWP â ACWP. 1  The formula mentioned above gives the variance in terms of cost. 2  Positive CV indicates the project is under-budget. 3  Negative CV indicates the project is over-budget.
In its simplest form a budget is a plan or forecast in the form of a list, showing spending items and/or incoming revenue items, with a figure for each item. As time passes, actual spending or revenue may be entered into the list to compare with the originally budgeted figure.ere, a positive variance means that spending is over budget and a negative variance means that spending is under budget. However, note that this convention is not universally observed: some people prefer to show overspending as a negative figure by calculating variance as the planned figure less the actual figure.