| new skills - Team Nuggets
New Training: Project Cost Management
In this 9-video skill, CBT Nuggets trainer Simona Millham covers the four project management processes in the topic of cost management. Watch this new Project Management training.
Watch the full course: Certified Associate in Project Management (CAPM)
This training includes:
- 9 videos
- 49 minutes of training
You’ll learn these topics in this skill:
- Plan Cost Management
- Estimate Costs
- Determine Budget
- Introduction to Earned Value Management
- Variance Analysis
- VAC and TCPI
- Earned Value Formulas Roundup!
- Control Costs
What is Variance Analysis and How Does It Help Organizations?
Variance Analysis is a quantitative financial strategy that analyzes the differences between target numbers and actual numbers over a particular reporting period. Take, for example, a sales quarter. If the target sales for Q1 were $1,000,000 but the actual reported sales for Q1 were $900,000, the variance analysis would show a variance of $100,000.This analysis can give insight into over performance or underperformance of quantitative-based goals. Furthermore, it allows organizations to investigate the root cause of the variance. In our previous example, the organization could investigate what drove the variance in sales and take action to remediate these challenges. This variance could be due to market changes, product release challenges, or customer churn. In any case, determining the root cause of the variance is critical, as it allows organizations to correct course and realign their positioning to meet the target goal.