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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.
Cost variance is the budgeted cost of work performed minus the actual cost of work performed. In other words, it is the difference between planned and actual costs of certain tasks within a specified period.ost and schedule variance data are part of earned value analysis, which is a tool that small and large businesses use as an early-warning system to identify and manage problems in ongoing projects.