In Earned Value Management, cost performance is determined by subtracting actual cost from earned value. The resulting metric is referred to as Cost Variance (CV).

Cost Performance (CV) = Earned Value - Actual Cost

Cost variance is a true measure of cost performance. It compares the actual costs incurred to the value of work accomplished and eliminates the effects of schedule status variations, which are inherently present in a simple comparison of actual costs to a budget.

An analysis of actual costs and time-phased EAC data may be relevant for evaluation of current and future staffing requirements.