What is a primary benefit of using the Cost Variance formula?

The Cost Variance formula is primarily used to assess whether a project is on budget by comparing the planned budget with the actual costs incurred. This formula calculates the difference between what was budgeted (Planned Value) and what has actually been spent (Actual Cost). If the result is positive, it indicates that the project is under budget, while a negative result suggests that the project is over budget. This assessment is crucial for project managers to track financial performance and make informed decisions to keep the project on track financially. Evaluating cost variance enables project teams to identify areas where costs may be exceeding expectations and allows for timely adjustments or interventions to control budget overruns.