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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.
Sales volume variance. is a subset of the static budget variance and is the difference between the flexible budget revenues and cost and the static budget revenues and costs. Because simply the level of production can explain this variance, this variance is not very useful in controlling operations.y holding AQ constant, the difference is due to the difference between the actual price paid for DM and DL and the budgeted or standard amount expected for DM and DL. Investigation of what causes these variances is used to control operations. The price variance for DM can be determined when the materials are purchased.