How is it that the Cost Variance (CV) is sloping down, the CVcum is a negative number and getting worse yet the Cost Variance Percent (CV%) is sloping up getting better still a negative but the percent is getting closer to zero.
It is possible for the cost variance to worsen in terms of absolute dollar value and still see the CV% increase. This is because the CV% is dependent on the ratio of the CV in dollars to the value of the BCWP or earned value (CV%=CV/BCWP * 100). If the CV increases at a slower rate than the BCWP increases, the CV% will rise because the CV is a smaller proportion of the cumulative cost variance. See the included table and graphs for an example.
(cumulative) Apr May Jun Jul Aug Sep
BCWP $100.00 $120.00 $150.00 $160.00 $200.00 $300.00
ACWP $110.00 $135.00 $160.00 $185.00 $230.00 $335.00
CV -$10.00 -$15.00 -$10.00 -$25.00 -$30.00 -$35.00 cost variance is terms of dollars is worsening
CV% -10% -13% -7% -16% -15% -12% CV % is improving because CV as a percentage of BCWP-cum is lower
Please see the Excel file at https://acc.dau.mil/CommunityBrowser.aspx?id=482963 for explanatory graphs if you want a visual representation.
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