{"id":1608,"date":"2023-02-01T11:19:00","date_gmt":"2023-02-01T11:19:00","guid":{"rendered":"https:\/\/plaky.com\/learn\/?p=1608"},"modified":"2025-01-09T00:00:00","modified_gmt":"2025-01-09T00:00:00","slug":"cost-variance","status":"publish","type":"post","link":"https:\/\/plaky.com\/learn\/pt\/project-management\/cost-variance\/","title":{"rendered":"What Is Cost Variance (CV)? Formula + Examples"},"content":{"rendered":"\n<p class=\"translation-block\">Cost variance is a project management concept used to keep a project\u2019s budgeted costs on track. As the budget is one of the most important elements of a project, project managers should calculate the cost variance throughout the project\u2019s life cycle.<\/p>\n\n\n\n<p class=\"translation-block\">Below, we will define cost variance, explore the importance of cost variance analysis in project management, and show you how to use various cost variance formulas to calculate it as the project progresses.<\/p>\n\n\n\n<p class=\"translation-block\">You\u2019ll also see cost performance values illustrated through practical examples and get tips on how to keep projects on the right track.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"600\" src=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Cost-variance-cover-1.png\" alt=\"Cost variance - cover\" class=\"wp-image-6881\" srcset=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Cost-variance-cover-1.png 1200w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Cost-variance-cover-1-300x150.png 300w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Cost-variance-cover-1-1024x512.png 1024w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Cost-variance-cover-1-768x384.png 768w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Cost-variance-cover-1-18x9.png 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list key-takeaways\">\n<li class=\"translation-block\">Cost variance is the difference between the estimated and actual project costs.<\/li>\n\n\n\n<li class=\"translation-block\">Calculating cost variance requires knowledge of earned value and actual costs.<\/li>\n\n\n\n<li class=\"translation-block\">There are 3 outcomes when calculating cost variance: positive, zero, and negative.<\/li>\n\n\n\n<li class=\"translation-block\">You can calculate cost variance for several consecutive periods, at a particular point in time, or at the end of a project.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"what-is-cost-variance\" class=\"wp-block-heading translation-block\">What is cost variance?<\/h2>\n\n\n\n<p class=\"translation-block\"><strong>Cost variance is the difference between a project\u2019s expected and actual cost at a given point in time.<\/strong><\/p>\n\n\n\n<p class=\"translation-block\">Cost variance (CV) is calculated as the difference between the earned value (EV) and the actual cost (AC) of a project.<\/p>\n\n\n\n<p class=\"translation-block\">This calculation can be performed at any point during the project\u2019s development to check whether the project is on, under, or over the planned budget.<\/p>\n\n\n\n<p class=\"translation-block\">Cost variance is one of the key elements of earned value analysis (EVA), which you can use to evaluate a project\u2019s performance and progress.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"translation-block\">\ud83d\udca1 <strong>Plaky Pro Tip<\/strong><\/p>\n\n\n\n<p class=\"translation-block\">Earned value analysis and its key dimensions are a part of earned value management (EVM), a performance management methodology. To learn more about EVM, check out this guide:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/plaky.com\/learn\/project-management\/earned-value-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">Earned Value Management: An Overview With Formulas<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">Knowing how to calculate cost variance is important because it lets project managers detect any unexpected costs<strong> on time<\/strong>.<\/p>\n\n\n\n<p class=\"translation-block\">Managers often know what to expect based on experience and thorough planning. They define a solid cost baseline through cost estimating.<\/p>\n\n\n\n<p class=\"translation-block\">With these elements in place, PMs can then use cost variance analysis and other EVM calculations to check if the project is on schedule and whether there are any cost overruns.<\/p>\n\n\n\n<p class=\"translation-block\">\n<div class=\"banner banner-dark plaky-gradient-landing-1\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <h2 class=\"translation-block text-2xl !mb-4\">Powerful task management software<\/h2>\n        <p class=\"translation-block !text-sm\">Is Plaky a good fit for you? Stop wondering and start your free 14-day trial.<\/p>\n\n        <div class=\"banner-buttons d-flex space-x-4 translation-block\">\n            <a class=\"rounded-md px-6 py-2 bg-white\" href=\"https:\/\/app.plaky.com\/signup\" target=\"_blank\">Try for free<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/plaky.com\" target=\"_blank\">Learn more<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-bottom \">\n        <picture>\n            <source srcset=\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/landing-1@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/landing-1.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<h2 id=\"how-to-calculate-cost-variance-in-project-management\" class=\"wp-block-heading translation-block\">How to calculate cost variance in project management&nbsp;<\/h2>\n\n\n\n<p class=\"translation-block\">The cost variance formula helps you determine the difference between the budgeted cost of work performed (BCWP) and the actual cost of work performed (ACWP). These parameters are also known as earned value (EV) and actual cost (AC).<\/p>\n\n\n\n<p class=\"translation-block\"><strong>Earned value<\/strong> is defined as the monetary value of work performed, while <strong>actual cost<\/strong> is the money spent on the work performed at a given point in time.<\/p>\n\n\n\n<p class=\"translation-block\">So, the cost variance for a project is calculated by subtracting actual costs from earned value:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block\" style=\"background-color:#e5f6fe\">CV = EV \u2013 AC<\/p>\n\n\n\n<p class=\"translation-block\">You can get the value of AC by simply adding up all the costs. To calculate EV, use this formula:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block\" style=\"background-color:#e5f6fe\">EV = % of work completed x total project budget<\/p>\n\n\n\n<p class=\"translation-block\">To calculate how much a project is over or under budget in percentages, use this cost variance formula:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block\" style=\"background-color:#e5f6fe\">CV % = (EV \u2013 AC) \/ EV<\/p>\n\n\n\n<h2 id=\"positive-vs-negative-cost-variance\" class=\"wp-block-heading translation-block\">Positive vs. negative cost variance<\/h2>\n\n\n\n<p class=\"translation-block\">The main purpose of calculating the cost variance is to see whether the project expenses are under control and how well the project is performing financially.<\/p>\n\n\n\n<p class=\"translation-block\">A big part of project cost control is figuring out how much the actual cost has deviated from the <a href=\"https:\/\/plaky.com\/learn\/project-management\/baseline-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">cost baseline<\/a> and what caused the variance.<\/p>\n\n\n\n<p class=\"translation-block\">Ideally, the cost variance of a project should be <strong>zero<\/strong>, meaning that the expenses haven\u2019t strayed from their planned value. However, this rarely happens as not every project always goes according to plan.<\/p>\n\n\n\n<p class=\"translation-block\">Instead, we can distinguish between a <strong>positive<\/strong> (favorable) and a <strong>negative<\/strong> (unfavorable) cost variance.<\/p>\n\n\n\n<p class=\"translation-block\"><strong>A favorable cost variance occurs when project expenses are below the budgeted value at a certain point in time.<\/strong> A positive cost variance is usually a good sign. Still, <a href=\"https:\/\/plaky.com\/learn\/project-management\/what-project-managers-do\/\" target=\"_blank\" rel=\"noreferrer noopener\">project managers<\/a> should investigate whether it is a result of falling behind the project schedule.<\/p>\n\n\n\n<p class=\"translation-block\">In contrast,<strong> an unfavorable cost variance indicates the project is currently over budget,<\/strong> meaning that project managers should look into the unfavorable result and take corrective action.<\/p>\n\n\n\n<p class=\"translation-block\">We can apply the cost variance formula to different budget categories and types of project costs to determine where we stand financially. That way, we can pinpoint exactly where the positive or negative cost variance has occurred.<\/p>\n\n\n\n<h2 id=\"cost-variance-examples\" class=\"wp-block-heading translation-block\">Cost variance examples<\/h2>\n\n\n\n<p class=\"translation-block\">Let\u2019s illustrate the concept of cost variance and its results with examples so that you can better understand this cost performance measurement.<\/p>\n\n\n\n<h3 id=\"example-1-negative-cost-variance\" class=\"wp-block-heading translation-block\">Example #1: Negative cost variance<\/h3>\n\n\n\n<p class=\"translation-block\">Imagine you need to build a garden fence. Your budget is $4,000, and you have 5 days to build it.<\/p>\n\n\n\n<p class=\"translation-block\">Today is day 4. You spent $3,300 but only did 75% of the work because you had to go to the store to get a new spade and some screws.<\/p>\n\n\n\n<p class=\"translation-block\">Clearly, everything didn\u2019t go according to plan, and you want to check the cost variance to see where your project stands.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">Actual cost (AC) = $3,300<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">Earned value (EV) = $4,000 x 75% = $3,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">Cost variance (CV) = EV \u2013 AC = -$300<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">The actual cost is the amount you have spent on the project so far, while the earned value is the value of work performed.<\/p>\n\n\n\n<p class=\"translation-block\"><strong>If the actual cost is greater than what the cost should have been, there\u2019s a negative variance.<\/strong> In this case, the result shows your project is over budget by $300.<\/p>\n\n\n\n<h3 id=\"example-2-zero-cost-variance\" class=\"wp-block-heading translation-block\">Example #2: Zero cost variance<\/h3>\n\n\n\n<p class=\"translation-block\">Let\u2019s say that you\u2019ve hired a team to renovate your master bathroom. The renovation should cost $8,000, including all the necessary materials. The team has 10 days to complete the project.<\/p>\n\n\n\n<p class=\"translation-block\">By the end of day 5, the team has completed 50% of the work. So far, you\u2019ve spent $4,000 on the renovation.<\/p>\n\n\n\n<p class=\"translation-block\">In this case, the project is right on track. Here\u2019s why:<\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">Actual cost (AC) = $4,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">Earned value (EV) = $8,000 x 50% = $4,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">Cost variance (CV) = EV \u2013 AC = $4,000 \u2013 $4,000 = $0<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">The project is financially doing well and is neither over nor under budget.<\/p>\n\n\n\n<p class=\"translation-block\"><strong>When the actual cost is equal to the projected cost, there is zero cost variance.<\/strong><\/p>\n\n\n\n<h3 id=\"example-3-positive-cost-variance\" class=\"wp-block-heading translation-block\">Example #3: Positive cost variance<\/h3>\n\n\n\n<p class=\"translation-block\">Now imagine you\u2019re building an extension to your house to get another bedroom. The duration of this project is going to be 20 days, and you\u2019ve allocated $50,000 for it, including all the tools, materials, and furniture.<\/p>\n\n\n\n<p class=\"translation-block\">At the end of day 17, you want to check how the project is doing financially, whether you\u2019ll have to extend the project deadline, and if more funds are needed.<\/p>\n\n\n\n<p class=\"translation-block\">But you\u2019re in for a surprise. You find out that you have spent only $40,000 because you opted to buy some of the furniture at the local thrift stores.<\/p>\n\n\n\n<p class=\"translation-block\">Better yet, you have completed 85% of the work, which means you\u2019re right on schedule.<\/p>\n\n\n\n<p class=\"translation-block\">So, let\u2019s calculate your project\u2019s financial state.<\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">Actual cost (AC) = $40,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">Earned value (EV) = $50,000 x 85% = $42,500<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">Cost variance (CV) = EV \u2013 AC = $42,500 \u2013 $40,000 = $2,500<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">This means that you\u2019re $2,500 under budget.<\/p>\n\n\n\n<p class=\"translation-block\"><strong>When the actual cost is below the planned budget, there is a positive cost variance.<\/strong><\/p>\n\n\n\n<h2 id=\"cost-variance-calculation-methods\" class=\"wp-block-heading translation-block\">Cost variance calculation methods<\/h2>\n\n\n\n<p class=\"translation-block\">There are 3 different methods you can use to figure out a project\u2019s cost variance:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Cumulative cost variance,&nbsp;<\/li>\n\n\n\n<li class=\"translation-block\">Period-by-period (or point-in-time) cost variance, and<\/li>\n\n\n\n<li class=\"translation-block\">Variance at completion.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block\">Let\u2019s see how you can calculate cost variance in all 3 ways through a simple example.<\/p>\n\n\n\n<h3 id=\"cumulative-cost-variance\" class=\"wp-block-heading translation-block\">Cumulative cost variance<\/h3>\n\n\n\n<p class=\"translation-block\"><strong>Cumulative cost variance takes into account multiple time frames<\/strong>. It\u2019s calculated by finding the difference between the cumulative earned value and the cumulative actual cost of a project.<\/p>\n\n\n\n<p class=\"translation-block\">To illustrate, imagine you\u2019re working on a project with a budget of $5,000 and have 5 weeks to finish it. Over the course of 3 weeks, you manage to do 65% of the project while spending $3,500.<\/p>\n\n\n\n<p class=\"translation-block\">Here\u2019s a breakdown of the work performance and project costs for each week:<\/p>\n\n\n\n<figure class=\"wp-block-table translation-block\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\"><strong>Time period<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>% of work done<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>Costs<\/strong><\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Week 1<\/td><td class=\"has-text-align-left\" data-align=\"left\">15%<\/td><td class=\"has-text-align-left\" data-align=\"left\">$800<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Week 2<\/td><td class=\"has-text-align-left\" data-align=\"left\">20%<\/td><td class=\"has-text-align-left\" data-align=\"left\">$1,250<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Week 3<\/td><td class=\"has-text-align-left\" data-align=\"left\">30%<\/td><td class=\"has-text-align-left\" data-align=\"left\">$1,450<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"translation-block\">We can now calculate the cumulative cost variance with the following values:<\/p>\n\n\n\n<p class=\"translation-block\">Actual cost (AC) = $3,500<\/p>\n\n\n\n<p class=\"translation-block\">Earned value (EV) = $5,000 x 65% = $3,250<\/p>\n\n\n\n<p class=\"translation-block\">Cost variance (CV) = EV \u2013 AC = $3,250 \u2013 $3,500 = -$250<\/p>\n\n\n\n<p class=\"translation-block\">The result shows a negative cost variance, meaning there\u2019s a <a href=\"https:\/\/plaky.com\/blog\/cost-overrun\/\" target=\"_blank\" rel=\"noreferrer noopener\">cost overrun<\/a>.<\/p>\n\n\n\n<h3 id=\"period-by-period-cost-variance\" class=\"wp-block-heading translation-block\">Period-by-period cost variance<\/h3>\n\n\n\n<p class=\"translation-block\"><strong>Period-by-period cost variance measures the cost variance in a single time frame<\/strong>. It\u2019s also called point-in-time cost variance, and it\u2019s the difference between the earned value and the actual cost of a single <a href=\"https:\/\/plaky.com\/learn\/project-management\/phases-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">project phase<\/a> or time period \u2014 without taking into account previous or future variances.<\/p>\n\n\n\n<p class=\"translation-block\">To calculate these cost variances, we use the same basic formula for CV:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block\" style=\"background-color:#e5f6fe\">CV = EV \u2013 AC<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"translation-block\">The main difference, however, is in the time period(s) we focus on.<\/p>\n\n\n\n<p class=\"translation-block\">Let\u2019s go back to our example. Here\u2019s the EV and AC data for each week:<\/p>\n\n\n\n<figure class=\"wp-block-table translation-block\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\"><strong>Time period<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>EV<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>AC<\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong>CV = EV \u2013 AC<\/strong><\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Week 1<\/td><td class=\"has-text-align-left\" data-align=\"left\">$750<\/td><td class=\"has-text-align-left\" data-align=\"left\">$800<\/td><td class=\"has-text-align-left\" data-align=\"left\">-$50<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Week 2<\/td><td class=\"has-text-align-left\" data-align=\"left\">$1,000<\/td><td class=\"has-text-align-left\" data-align=\"left\">$1,250<\/td><td class=\"has-text-align-left\" data-align=\"left\">-$250<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Week 3<\/td><td class=\"has-text-align-left\" data-align=\"left\">$1,500<\/td><td class=\"has-text-align-left\" data-align=\"left\">$1,450<\/td><td class=\"has-text-align-left\" data-align=\"left\">$50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"translation-block\">This example shows us the project missed the budget mark in the first 2 weeks.<\/p>\n\n\n\n<p class=\"translation-block\">There are only 2 weeks left to the deadline, and the budget is running out. So, the project manager must take immediate action and redistribute the remaining budget or find additional funds.<\/p>\n\n\n\n<p class=\"translation-block\">Staying on top of deadlines and budgets is a lot easier when tasks are organized with <a href=\"https:\/\/plaky.com\/project-management-software\" target=\"_blank\" rel=\"noreferrer noopener\">project management software<\/a> like Plaky. Here\u2019s how our project can be set up in a single board:<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"535\" src=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/A-weekly-project-cost-performance-breakdown-tracked-in-Plaky-4.png\" alt=\"A weekly project cost performance breakdown shown in Plaky project management software\" class=\"wp-image-6886\" srcset=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/A-weekly-project-cost-performance-breakdown-tracked-in-Plaky-4.png 1200w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/A-weekly-project-cost-performance-breakdown-tracked-in-Plaky-4-300x134.png 300w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/A-weekly-project-cost-performance-breakdown-tracked-in-Plaky-4-1024x457.png 1024w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/A-weekly-project-cost-performance-breakdown-tracked-in-Plaky-4-768x342.png 768w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/A-weekly-project-cost-performance-breakdown-tracked-in-Plaky-4-18x8.png 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">A weekly project cost performance breakdown tracked in Plaky<\/figcaption><\/figure>\n<\/div>\n\n\n<h3 id=\"variance-at-completion-vac\" class=\"wp-block-heading translation-block\">Variance at completion (VAC)<\/h3>\n\n\n\n<p class=\"translation-block\"><strong>Variance at completion is the difference between the budget at completion (BAC) and the most recent estimate at completion (EAC)<\/strong>. Its core purpose is to predict if there will be a budget deficit or surplus at the project\u2019s end.<\/p>\n\n\n\n<p class=\"translation-block\">Before we look at the formula for VAC, let\u2019s consider what EAC is and how to calculate it.<\/p>\n\n\n\n<p class=\"translation-block\">EAC represents the predicted cost of the project at its completion, which we can calculate while the project is underway.<\/p>\n\n\n\n<p class=\"translation-block\">EAC can be calculated in 4 different ways, depending on what\u2019s going on with our project:<\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">EAC = AC + bottom-up ETC<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EAC = AC + (BAC \u2013 EV)<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EAC = BAC \/ CPI<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EAC = AC + [(BAC \u2013 EV) \/ (CPI \u00d7 SPI)]<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"translation-block\">\ud83d\udca1 <strong>Plaky Pro Tip<\/strong><\/p>\n\n\n\n<p class=\"translation-block\">We have a complete guide on how to calculate EAC using these formulas \u2014 and how to decide which formula to use. Check it out here:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/plaky.com\/learn\/project-management\/eac-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">Estimate at Completion (EAC): Definition, Formula, and Examples<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"translation-block\">You may notice that some of the formulas for EAC require CPI.<\/p>\n\n\n\n<p class=\"translation-block\">The <a href=\"https:\/\/plaky.com\/learn\/project-management\/cpi-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">cost performance index (CPI)<\/a> measures the cost efficiency of budgeted resources. It\u2019s calculated as the ratio of earned value to actual cost:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block\" style=\"background-color:#e5f6fe\">CPI = EV \/ AC<\/p>\n\n\n\n<p class=\"translation-block\">Now that we\u2019ve defined all the elements, we can use this simple formula to calculate the variance at completion:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block\" style=\"background-color:#e5f6fe\">VAC = BAC \u2013 EAC<\/p>\n\n\n\n<p class=\"translation-block\">Much like CV, VAC can also be positive, zero, or negative. Here\u2019s how to interpret the results:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><strong>Positive VAC<\/strong> \u2014 The project will end under budget.<\/li>\n\n\n\n<li class=\"translation-block\"><strong>Zero VAC<\/strong> \u2014 The project will use up all of the planned budget.<\/li>\n\n\n\n<li class=\"translation-block\"><strong>Negative VAC<\/strong> \u2014 The project will go over the planned budget.<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block\">Let\u2019s say there is a project underway whose budget is $500,000. After applying the formula for EAC, you get the result of $505,000.<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block\" style=\"background-color:#e5f6fe\">VAC = BAC \u2013 EAC = $500,000 \u2013 $505,000 = -$5,000.<\/p>\n\n\n\n<p class=\"translation-block\">So, it\u2019s expected that you will be $5,000 over the planned cost at the end of the project.<\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">Budget at completion (BAC) = $500,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">Estimate at completion (EAC) = $505,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">Variance at completion (VAC) = -$5,000<\/p>\n<\/div><\/div>\n\n\n\n<h2 id=\"types-of-cost-variances-in-project-management\" class=\"wp-block-heading translation-block\">Types of cost variances in project management<\/h2>\n\n\n\n<p class=\"translation-block\">Cost variances can occur in any project, and they are sometimes inevitable or even impossible to prevent.<\/p>\n\n\n\n<p class=\"translation-block\">Here are some of the most common types of cost variances you may run into in <a href=\"https:\/\/plaky.com\/learn\/project-management\/what-is-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">project management<\/a>.<\/p>\n\n\n\n<h3 id=\"material-cost-variance\" class=\"wp-block-heading translation-block\">Material cost variance<\/h3>\n\n\n\n<p class=\"translation-block\">Staying within the <a href=\"https:\/\/plaky.com\/blog\/project-management-budgeting-methods\/\" target=\"_blank\" rel=\"noreferrer noopener\">project budget<\/a> largely depends on your estimates being accurate. You can\u2019t always predict economic conditions, the rates and prices you will have to adhere to, or the exact circumstances linked to their changes.<\/p>\n\n\n\n<p class=\"translation-block\">Contractors may change the prices of tools, materials, and other <a href=\"https:\/\/plaky.com\/learn\/project-management\/project-resources\/\" target=\"_blank\" rel=\"noreferrer noopener\">project resources<\/a>. Prices may go up due to unforeseen circumstances, and if you don\u2019t have a way of lowering them, you might end up with a negative cost variance.<\/p>\n\n\n\n<p class=\"translation-block\">Whatever the reasons behind the changes may be, they will inevitably prevent you from accurately reporting on the project\u2019s progress.&nbsp;<\/p>\n\n\n\n<p class=\"translation-block\">So, if you notice that the changes are constant, and not a one-time thing, make sure to reevaluate your budget and <a href=\"https:\/\/plaky.com\/learn\/project-management\/scope-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">project scope<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"translation-block\">\ud83d\udca1 <strong>Plaky Pro Tip<\/strong><\/p>\n\n\n\n<p class=\"translation-block\">Do you know what scope creep is and how it can affect your projects? Learn all about it in this post:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/plaky.com\/learn\/project-management\/scope-creep-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">What Is Scope Creep in Project Management?<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"labor-cost-variance\" class=\"wp-block-heading translation-block\">Labor cost variance<\/h3>\n\n\n\n<p class=\"translation-block\">If the project\u2019s requirements change, the scope may also suffer some modifications. These changes may include adding or eliminating certain <a href=\"https:\/\/plaky.com\/blog\/project-activities\/\" target=\"_blank\" rel=\"noreferrer noopener\">project activities<\/a>.<\/p>\n\n\n\n<p class=\"translation-block\">If it takes more time to complete the project, the labor cost goes up, leading to negative labor cost variance. The same happens if the wages go up.<\/p>\n\n\n\n<p class=\"translation-block\">Alternatively, if some activities prove to be unnecessary, the costs will be lower than predicted, and the project will end up with a positive cost variance.<\/p>\n\n\n\n<h3 id=\"variable-overhead-variance\" class=\"wp-block-heading translation-block\">Variable overhead variance<\/h3>\n\n\n\n<p class=\"translation-block\">Variable overhead costs vary depending on productivity. It\u2019s up to project managers to make a reliable estimate of potential manufacturing, shipping, or marketing costs.<\/p>\n\n\n\n<p class=\"translation-block\">A bad estimate could signify that a cost variance is just around the corner. So, it\u2019s important to monitor and manage the estimates throughout the project\u2019s life cycle.<\/p>\n\n\n\n<h3 id=\"fixed-overhead-variance\" class=\"wp-block-heading translation-block\">Fixed overhead variance<\/h3>\n\n\n\n<p class=\"translation-block\">Fixed expenses don\u2019t vary regardless of productivity. Expenses such as rent, wages of regular employees, and taxes are all long-term costs that don\u2019t change quickly or often.<\/p>\n\n\n\n<p class=\"translation-block\">Unless there are significant sudden changes, these costs shouldn\u2019t affect a project\u2019s cost variance.<\/p>\n\n\n\n<h2 id=\"how-to-keep-your-projects-on-the-right-track\" class=\"wp-block-heading translation-block\">How to keep your projects on the right track<\/h2>\n\n\n\n<p class=\"translation-block\">Project managers are in charge of delivering high-quality <a href=\"https:\/\/plaky.com\/learn\/project-management\/deliverable-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">project deliverables<\/a> while handling the 3 <a href=\"https:\/\/plaky.com\/learn\/project-management\/project-constraints\/\" target=\"_blank\" rel=\"noreferrer noopener\">project constraints<\/a>: scope, time, and cost.<\/p>\n\n\n\n<p class=\"translation-block\">Keeping a project within budget can be a challenge due to the many unforeseeable circumstances that affect the project\u2019s financial performance.<\/p>\n\n\n\n<p class=\"translation-block\">Here are 5 tips to help you avoid negative cost variances and keep your project budget and expenses in check:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Set realistic and accurate goals and estimates.<\/li>\n\n\n\n<li class=\"translation-block\">Plan out your costs with WBS.<\/li>\n\n\n\n<li class=\"translation-block\">Keep track of your project\u2019s KPIs.<\/li>\n\n\n\n<li class=\"translation-block\">Investigate cost variances regularly.<\/li>\n\n\n\n<li class=\"translation-block\">Continue to forecast throughout the project\u2019s life cycle.<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block\">Let\u2019s discuss these tips in more detail.<\/p>\n\n\n\n<h3 id=\"set-realistic-and-accurate-goals-and-estimates\" class=\"wp-block-heading translation-block\">Set realistic and accurate goals and estimates<\/h3>\n\n\n\n<p class=\"translation-block\">Setting realistic <a href=\"https:\/\/plaky.com\/blog\/smart-goals-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">project goals<\/a> and estimates can be achieved by taking historical data into account. It\u2019s common for project managers to look at previous similar projects and create a roadmap that reflects past experiences.<\/p>\n\n\n\n<p class=\"translation-block\">The budget, scope, and project timeline must be accurate and feasible. Otherwise, you\u2019ll fall into the trap of overpromising and under-delivering.<\/p>\n\n\n\n<p class=\"translation-block\">The estimation process can and should include the team and <a href=\"https:\/\/plaky.com\/learn\/project-management\/stakeholder-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">project stakeholders<\/a>. They can give valuable feedback that lets project managers make a more detailed cost breakdown and potentially prevent both negative and overly positive cost variances that give wrong budget assumptions.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"translation-block\">\ud83d\udca1 <strong>Plaky Pro Tip<\/strong><\/p>\n\n\n\n<p class=\"translation-block\">Learning from your past experiences is vital for becoming a better project manager and leading successful projects. The post-implementation project review and lessons learned can help you on that mission. Check out our guides on both:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/plaky.com\/learn\/project-management\/post-implementation-review\/\" target=\"_blank\" rel=\"noreferrer noopener\">Post-Implementation Review in Project Management: Explained<\/a><\/li>\n\n\n\n<li class=\"translation-block\"><a href=\"https:\/\/plaky.com\/blog\/lessons-learned-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">How to Document Lessons Learned in Project Management<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"use-a-wbs-for-cost-planning\" class=\"wp-block-heading translation-block\">Use a WBS for cost planning<\/h3>\n\n\n\n<p class=\"translation-block\">A <a href=\"https:\/\/plaky.com\/learn\/project-management\/work-breakdown-structure-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">work breakdown structure<\/a> (WBS) is a catalog of every task you need to do to complete a project. A WBS can also serve as a guide for a cost breakdown as it includes 100% of the project-related work.<\/p>\n\n\n\n<p class=\"translation-block\">When making a WBS, strive to be as detailed as possible. That way, you will lower the chance of omitting an important expense that could lead to a cost variance later on.<\/p>\n\n\n\n<p class=\"translation-block\">An expert we reached out to, <a href=\"https:\/\/www.linkedin.com\/in\/carlarjenkins\/\" target=\"_blank\" rel=\"noreferrer noopener\">Carla Jenkins<\/a>, a PMP-certified Senior Project Manager at Phenomena Corporation, suggests going the extra mile when preparing your budget and outlining the potential costs:<\/p>\n\n\n\n<div class=\"wp-block-columns pro-blockquote is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins.jpg\" alt=\"Carla Jenkins\" class=\"wp-image-1609\" style=\"width:404px;height:auto\" srcset=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins.jpg 400w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins-300x300.jpg 300w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins-150x150.jpg 150w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"translation-block\"><em>\u201cI draft 3 different budgets using the 3-point method based on most likely, best-case, and worst-case scenarios. Having these 3 different budget baselines helps me gauge if I need to ask for help securing more people and resources.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<p class=\"custom-btn translation-block\"><a href=\"https:\/\/app.plaky.com\/signup\" target=\"_blank\" rel=\"noreferrer noopener\">Create a WBS in Plaky<\/a><\/p>\n\n\n\n<h3 id=\"track-project-kpis\" class=\"wp-block-heading translation-block\">Track project KPIs<\/h3>\n\n\n\n<p class=\"translation-block\">Some of the most useful <a href=\"https:\/\/plaky.com\/blog\/kpi-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">project management KPIs<\/a> you can track to keep your budget in check include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Earned value,<\/li>\n\n\n\n<li class=\"translation-block\">Actual cost,<\/li>\n\n\n\n<li class=\"translation-block\">Cost variance, and<\/li>\n\n\n\n<li class=\"translation-block\">Cost performance index.<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block\">You can always choose to track more than these 4 KPIs.<\/p>\n\n\n\n<p class=\"translation-block\">For example, planned hours vs. time spent is a rather handy KPI, as tracking the time you spend on each <a href=\"https:\/\/plaky.com\/blog\/project-task-list\/\" target=\"_blank\" rel=\"noreferrer noopener\">project task<\/a> and comparing it to your estimates will show you the accuracy of your schedule.<\/p>\n\n\n\n<p class=\"translation-block\">While monitoring KPIs, it\u2019s also essential to review them regularly with your project team and stakeholders. Everyone should have a clear idea of the project\u2019s progress and the roadblocks it faces.<\/p>\n\n\n\n<h3 id=\"investigate-cost-variances-regularly\" class=\"wp-block-heading translation-block\">Investigate cost variances regularly<\/h3>\n\n\n\n<p class=\"translation-block\">Cost variances can be a result of various issues and changing circumstances. Their effect on the whole project can be monumental, so it\u2019s necessary to keep tabs on them regularly.<\/p>\n\n\n\n<p class=\"translation-block\">You can investigate each type of cost separately to determine where and why the variance has occurred.<\/p>\n\n\n\n<p class=\"translation-block\">For instance, if you\u2019re consistently missing the mark in terms of labor costs, you could examine why the variance keeps happening and use corrective measures to reduce it.<\/p>\n\n\n\n<p class=\"translation-block\">A major part of project cost control includes establishing variance control thresholds. These are set amounts of variation that don\u2019t require any corrective action.<\/p>\n\n\n\n<p class=\"translation-block\">Corrective action should always involve the proper identification of the causes and their consistency.<\/p>\n\n\n\n<p class=\"custom-btn translation-block\"><a href=\"https:\/\/app.plaky.com\/signup\">Track project costs in Plaky<\/a><\/p>\n\n\n\n<h3 id=\"forecast-continually\" class=\"wp-block-heading translation-block\">Forecast continually<\/h3>\n\n\n\n<p class=\"translation-block\">Our final tip is to continue forecasting your project\u2019s cost performance until it is completed.<\/p>\n\n\n\n<p class=\"translation-block\">It\u2019s important to watch the budget closely and keep forecasting frequently due to the impact project changes have on costs.<\/p>\n\n\n\n<p class=\"translation-block\">Consistent re-forecasting allows you to stay on top of all costs-related matters within the project\u2019s life cycle. You\u2019ll also be better at gauging the project\u2019s progress.<\/p>\n\n\n\n<p class=\"translation-block\">The expert we reached out to, Carla Jenkins, says that she re-forecasts on a routine basis.<\/p>\n\n\n\n<div class=\"wp-block-columns pro-blockquote is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins.jpg\" alt=\"Carla Jenkins\" class=\"wp-image-1609\" srcset=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins.jpg 400w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins-300x300.jpg 300w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins-150x150.jpg 150w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"translation-block\"><em><em>\u201cAt the end of my week, I re-forecast my budget. I do it every week so that I do not miss any trends or developments.\u201d<\/em><\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<p class=\"translation-block\">Re-forecasting her budget on a weekly basis allows Jenkins to be proactive about cost control:<\/p>\n\n\n\n<div class=\"wp-block-columns pro-blockquote is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins.jpg\" alt=\"Carla Jenkins\" class=\"wp-image-1609\" srcset=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins.jpg 400w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins-300x300.jpg 300w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/01\/Carla-Jenkins-150x150.jpg 150w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"translation-block\"><em><em><em>\u201cI also want to see if we\u2019re at least on budget or under budget. If we\u2019re over budget, let\u2019s see where we can cut costs by either streamlining resources or seeing where we can cut.\u201d<\/em><\/em><\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<p class=\"translation-block\">That said, there\u2019s no point in forecasting if you don\u2019t know what to do about the changing circumstances of your project\u2019s cost performance. So, make sure you have a plan B, C, and even D in place in case your project costs become more of a headache.<\/p>\n\n\n\n<p class=\"translation-block\">You need contingency plans to keep the project on the right track even if conditions such as costs change.<\/p>\n\n\n\n<p class=\"translation-block\">That way, you can balance out your project\u2019s cost performance and minimize any potential cost variances that may occur.<\/p>\n\n\n\n<p class=\"has-background translation-block\" style=\"background-color:#e5f6fe\">\ud83d\udcd6 To go beyond cost variance and even the EVM terminology, dive into our <a href=\"https:\/\/plaky.com\/learn\/glossary\/\" target=\"_blank\" rel=\"noreferrer noopener\">Project Management Glossary of Terms<\/a>.<\/p>\n\n\n\n<h2 id=\"track-all-project-costs-with-plaky\" class=\"wp-block-heading translation-block\">Track all project costs with Plaky<\/h2>\n\n\n\n<p class=\"translation-block\">Specialized <a href=\"https:\/\/plaky.com\/organisational-software\" target=\"_blank\" rel=\"noreferrer noopener\">organizational software<\/a> such as Plaky can help a great deal with managing costs and keeping the relevant KPIs of your projects in one place for effortless tracking and comparison.<\/p>\n\n\n\n<p class=\"translation-block\">Plaky can help you manage your projects successfully by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Offering plenty of <a href=\"https:\/\/plaky.com\/templates\/\" target=\"_blank\" rel=\"noreferrer noopener\">project management templates<\/a> to set up projects quickly,<\/li>\n\n\n\n<li class=\"translation-block\">Improving team collaboration with task-specific <a href=\"https:\/\/plaky.com\/features\/comments\" target=\"_blank\" rel=\"noreferrer noopener\">comment threads<\/a>,<\/li>\n\n\n\n<li class=\"translation-block\">Integrating with <a href=\"https:\/\/clockify.me\/plaky-time-tracking\" target=\"_blank\" rel=\"noreferrer noopener\">Clockify<\/a> to facilitate <a href=\"https:\/\/plaky.com\/blog\/project-time-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">project time management<\/a>,<\/li>\n\n\n\n<li class=\"translation-block\">Letting you choose between Table, Kanban, and Gantt views,<\/li>\n\n\n\n<li class=\"translation-block\">Allowing you to <a href=\"https:\/\/plaky.com\/features\/files\" target=\"_blank\" rel=\"noreferrer noopener\">share files<\/a> with the team, and<\/li>\n\n\n\n<li class=\"translation-block\">Automating your calculations.<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block\">\n<div class=\"banner banner-dark plaky-gradient-landing-2\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <h2 class=\"translation-block text-2xl !mb-4\">Advanced project management features<\/h2>\n        <p class=\"translation-block !text-sm\">Forget about cost overruns. Try Plaky today for free!<\/p>\n\n        <div class=\"banner-buttons d-flex space-x-4 translation-block\">\n            <a class=\"rounded-md px-6 py-2 bg-white\" href=\"https:\/\/app.plaky.com\/signup\" target=\"_blank\">Try for free<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/plaky.com\" target=\"_blank\">Learn more<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-middle \">\n        <picture>\n            <source srcset=\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/landing-2@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/landing-2.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<p class=\"translation-block\">You can also create custom fields and easily adapt the board to your needs, no matter how many different types of projects you\u2019re managing. In fact, Plaky is the only software you need to track project progress, control the project costs, and collaborate with your team \u2014 all in one place.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"537\" src=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Example-of-project-costs-tracked-in-Plaky.png\" alt=\"Example of project costs tracked in Plaky\n\" class=\"wp-image-6887\" srcset=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Example-of-project-costs-tracked-in-Plaky.png 1200w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Example-of-project-costs-tracked-in-Plaky-300x134.png 300w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Example-of-project-costs-tracked-in-Plaky-1024x458.png 1024w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Example-of-project-costs-tracked-in-Plaky-768x344.png 768w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2023\/02\/Example-of-project-costs-tracked-in-Plaky-18x8.png 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">Example of project costs tracked in Plaky<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"translation-block\"><em>Ready to put your project costs under control? Start your free 14-day Plaky trial today!<\/em><\/p>\n\n\n\n<p class=\"custom-btn translation-block\"><a href=\"https:\/\/app.plaky.com\/signup\" target=\"_blank\" rel=\"noreferrer noopener\">Get started with Plaky<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cost variance (CV) is the difference between earned value and actual cost that shows whether project costs are deviating from their planned values.<\/p>","protected":false},"author":21,"featured_media":6881,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7,4],"tags":[],"class_list":["post-1608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advanced-terminology","category-project-management"],"acf":[],"_links":{"self":[{"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/posts\/1608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/comments?post=1608"}],"version-history":[{"count":59,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/posts\/1608\/revisions"}],"predecessor-version":[{"id":12427,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/posts\/1608\/revisions\/12427"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/media\/6881"}],"wp:attachment":[{"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/media?parent=1608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/categories?post=1608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/tags?post=1608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}