What is Cost Variance (CV)?
Cost Variance is the dollar gap between the value of the work performed and what it cost: negative means over budget, positive means under. It says the same thing as CPI, but in currency instead of a ratio.
Memory hook that survives exam pressure: EV always comes first in every variance formula, and "negative is never good."
Formula
CV = EV − AC
Worked example
EV = $35,000, AC = $42,000. CV = 35,000 − 42,000 = −$7,000. Negative means over budget: the work completed is worth $7,000 less than it cost.