In project management a variance is the difference between a planned cost and the actual cost incurred and, normally, this leads to corrective actions. A more general definition of Variance Analysis can be found in Wikipedia and in many other web sites that specialize in this topic.

E

Hence, E

**Variance Analysis**

**At Time Now:**E

**i**= Initial Estimate (Planned or Estimated Budget) Actuals = A = Actual amount incurred E**t-c**= Estimate To Complete E**a-c**= Estimate At Completion = A + E**t-c**V**a-c**= Variance At Completion = E**i**- E**a-c****At New Time (Time Now + T):**If the variance is high (too much error or discrepancy), then it will be appropriate to assign E**a-c**as the new E**i.**Hence, E

**i (new time)**= E**a-c (time now)**