Knowing that the variance is favorable to the subject is something that a lot of people would like to hear. They know that this means that they do not have to go over the budget in order to push through with the project. The 0 also means that the project can be done on time or even ahead of time.
Take note that the schedule is important as this can also cause issues to the budget that has been set. The longer that the project takes before it is completed, the higher the costs that need to be paid. Take note that there are still other factors that may affect the cost of the project.
The variance is favorable to the project;-if the cost variance and the schedule variance are both greater than zero, thevariance is favorable to the project. a positive cost variance states that theproject is under budget. a positive schedule variance states that the project isahead of schedule. when both are positive, then the variance is favorable to theproject. a schedule variance could affect the cost variance on a project, but thisis not always the case. these variances can occur independent of each other.a negative cost variance states that the project is over budget. a negativeschedule variance states that the project is behind schedule. the project will facetime and cost overruns only when the cost variance and the schedule varianceare negative.the cost variance is affected when labor rates change. if labor ratesescalate, the cost variance will be negative.labor rate changes do not affect the schedule variance.
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