What are some examples of cost variance in project management?

What are some examples of cost variance in project management?

Cost variance refers to the difference between the budgeted cost of work performed and the actual cost. For example, if a project was budgeted at $10,000 but the actual cost is $12,000, the cost variance is -$2,000.

Can you give me a specific scenario where this might happen?

Sure! Imagine a construction project where unexpected material price increases occur. If the original budget was $50,000 but the actual costs rise to $60,000 due to these price hikes, the cost variance would be -$10,000.

What can project managers do to manage cost variance?

Project managers can regularly monitor expenses, adjust budgets as needed, and implement cost control measures to manage cost variance effectively.

Are there tools that can help with tracking cost variance?

Yes, there are several project management tools like Microsoft Project, Trello, and Asana that offer features for tracking costs and variances.