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Define activity variance formula9/12/2023 ![]() ![]() Inaccurate estimates and forecasts can lead to a significant discrepancy between what has been anticipated and what has actually transpired.There are different factors that contribute to the occurrence of activity variance. The actual budget that will be received in cash or payment evidences this. In an instance that activity variance occurs, this would necessitate for a change in the original plan offered to clients by the project management team and usually it is up to the program / project manager to decide how this variance would be dealt with.įor instance, in a project where the original plan envisaged the item not being delivered by a certain date, the project manager may decide to push the delivery date back further in order to complete this item.Īnother example of this is if the budget allocated for an item has decreased and needed to be revised down, then this is also considered as a project activity variance because of what will ultimately transpire in terms of cost. Activity variance may also be defined as the difference between actual progress of a project and its expected progress. What is Activity Variance?Īctivity variance can be described as the difference between what is planned and what has actually transpired in a project. In this guide, we will look at the term “activity variance” and how it is defined in project management, what effects it has on a project, and some best practices for project managers to manage such risk in their projects. It is important for project managers to analyze any activity variance that may arise in order to ensure the project will be completed on time, with an appropriate budget allocation. Matters such as the completion date and budget can fluctuate significantly if activities in a project are delayed and carried out over a significant period of time. Generally speaking, activity variance defines the degree of uncertainty or risk towards each activity planned for the project. How to Maximize ROI on Software Project.How to Write a Feasibility Study Report.How to Develop a Project Organization Chart.How Does A Program Differ From A Project?. ![]() ![]() What Skills Are Required For A Project Manager?. ![]()
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