Cost Variance
Finance
Cost Variance
Difference between actual cost and a budgeted, standard or expected cost.
Examples
- 01The cost variance for line 3 is EUR 18,000 above standard this month because of overtime during a machine failure.
- 02The monthly review breaks down each cost variance into price, volume and efficiency effects.
- 03After the root cause of a recurring cost variance is fixed, the team checks the next two months to confirm it is gone.