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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.
Baseline in Budgeting. A baseline in project budgeting is known as a cost baseline. This type of baseline is an approved plan that outlines the cost of a project in detail, both by cost category and by the cost per period of time. The baseline budget is what the project's implementation is judged against.