cost variance

USAGE SUMMARY

The phrase "cost variance" is correct and commonly used in written English.
It refers to the difference between the actual cost of something and the budgeted or estimated cost. Example: The project manager explained the cost variance to the client, highlighting the reasons for the increase in expenses.

✓ Grammatically correct

Science

Formal & Business

Academia

Human-verified examples from authoritative sources

Exact Expressions

32 human-written examples

But it did produce a list of 10 doctors most likely to be responsible for cost variance, and those three were among them.

Massachusetts Institute of Technology

The shape of data is used as an organising principle and the attribute of geometrical symmetry of cost variance point clouds used for the quantification of cost uncertainty.

Progress in Aerospace Sciences

This paper outlines a management accounting system, based upon cost variance analysis, which supports the pursuit of environmental and traditional financial goals within a decentralized organization.

Advances in Accounting

Cost uncertainty is declared to represent manifested and unintended future cost variance with a probability of 100% and an unknown quantity and innovative starting conditions considered to exist when no verified and accurate cost model is available.

Progress in Aerospace Sciences

At last, the supplier can benefit from transparency only under some specific conditions, and when the production cost variance is extremely large, nontransparent information acquisition is always the supplier's first choice.

International Journal of Production Economics

We show that, when demand is deterministic and supply may be disrupted, using a decentralized inventory design reduces cost variance through the risk diversification effect, and therefore a decentralized inventory system is optimal.

Omega

Human-verified similar examples from authoritative sources

Similar Expressions

28 human-written examples

We examine the expected costs and cost variances of the system in both a centralized and a decentralized inventory system.

Omega

The analysis found that the same routine dental exam for adults could cost as much as $240, or as low as $55, in the same geographic area (the review assessed cost variances within a 50-mile radius).

The New York Times

Where measures capture potentially conflicting influences on the manufacturing cost function, strategy implementation is facilitated by loosening control reactions to cost variances and through explicit attempts to integrate multiple measures.

Accounting, Organizations and Society

The cost variances for quantity, schedule, engineering, estimating, other and support are treated as manifested uncertainty and considered as vertices of simplex geometries propagating over time thus creating an uncertainty "cloud".

Procedia CIRP

Furthermore, although patients with drug coverage may be less affected depending on their deductible level, these cost variances may still be consequential.

BMC Ophthalmology

Expert writing Tips

Best practice

When analyzing "cost variance", always consider both favorable (under budget) and unfavorable (over budget) variances to get a complete picture of project performance.

Common error

Don't assume that "cost variance" and budget variance are interchangeable. "Cost variance" specifically relates to the difference in expenses, while budget variance can include revenue and other financial elements.

Linguistic Context

The phrase "cost variance" functions primarily as a noun phrase. It names a specific type of difference between budgeted and actual costs. Ludwig examples illustrate its use in discussing project management, financial analysis, and identifying areas for improvement.

Expression frequency: Common

Frequent in

Science

40%

Formal & Business

30%

Academia

20%

Less common in

News & Media

5%

Wiki

3%

Reference

2%

Ludwig's WRAP-UP

In summary, "cost variance" is a frequently used term that refers to the difference between the planned and actual costs of a project or activity. Ludwig AI confirms its grammatical correctness and common usage across various domains. As seen in Ludwig examples, it's prominent in scientific research, formal business reports, and academic discussions. When using "cost variance", remember to consider both favorable and unfavorable variances. To avoid confusion, it's important to distinguish it from budget variance, as cost variance specifically pertains to expenses. Keep in mind that factors like inaccurate estimations and scope changes can lead to significant "cost variance".

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

cost overrun

Specifically refers to instances where the actual cost exceeds the budget.

expense variation

A general term for any difference in expenses compared to what was expected.

budget deviation

Focuses on the difference from the planned budget, not necessarily specific to cost.

spending discrepancy

Indicates a difference or inconsistency in the amount of money spent.

expenditure fluctuation

Highlights the changes and instability in spending amounts.

financial deviation

A broader term encompassing any departure from the financial plan, including costs.

price fluctuation

Emphasizes changes in price, which may contribute to cost variance.

budgetary shortfall

Refers to a situation where the available budget is insufficient to cover actual costs.

margin deviation

Focuses on differences in profit margins due to cost changes.

accounting discrepancy

Implies an error or inconsistency in financial records related to costs.

FAQs

How is "cost variance" calculated?

The "cost variance" (CV) is calculated by subtracting the actual cost (AC) from the earned value (EV). A positive CV indicates that the project is under budget, while a negative CV indicates it's over budget.

What does a positive "cost variance" indicate?

A positive "cost variance" means the project is performing under budget. This suggests that the work completed has cost less than planned, which could be due to efficient resource management or lower-than-expected prices.

What are some common causes of "cost variance"?

Common causes include inaccurate initial estimates, scope creep, changes in market prices, unexpected delays, and inefficient resource allocation. Addressing these causes requires careful project management and monitoring.

What's the difference between "cost variance" and "schedule variance"?

"Cost variance" measures the difference between the actual cost and the budgeted cost of work performed. "Schedule variance", on the other hand, measures the difference between the planned schedule and the actual progress of the project.