What you provide
What you provide
- Budgeted or standard cost: Expected cost for the actual output and selected scope.
- Actual cost: Recorded cost for the same output, scope, and period.
COST CONTROL / FAVORABLE SIGN
Compare budgeted or standard cost with actual cost using an explicit positive-favorable convention and show the difference as a percentage.
Use boundary
Actual cost is subtracted from budgeted cost; a positive result is favorable and a negative result is unfavorable under this page convention.
Cost variance = budgeted or standard cost - actual cost; positive is favorable.
What you provide
What you receive
Use boundary
This total variance does not separate price, rate, usage, efficiency, mix, yield, volume, or timing causes.
This is an educational planning estimate, not accounting, tax, lending, or pricing advice. Confirm definitions, source records, commercial terms, and decisions with the responsible professional.
YOUR NIRMION
Need a reliable cost variance without opening another spreadsheet or installing an app? Use Cost Variance Calculator to compare actual and budgeted cost with an explicit positive-favorable sign.