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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.
The Project Management Institute, however, endorses the accepted convention that a negative variance is a bad thing, and a positive variance a good thing. A variance is the difference between the projected budget and the actual performance for a particular account. A negative variance means that the budgeted amount was greater than the actual amount spent. A positive variance means that the budgeted amount was less than the actual amount spent. Note there is some debate over whether a negative variance means an underrun or an overrun.