In construction cost control, what does a cost variance usually compare?
Correct answer: C. Actual cost with the approved or planned cost
- A. Contract duration with the soil bearing capacity
- B. Site area with the building height
- C. Actual cost with the approved or planned cost
- D. Material colour with the approved finish
Explanation
Cost variance shows the difference between actual expenditure and a planned or approved cost baseline. A positive or negative variance indicates that spending is above or below the relevant baseline, depending on the reporting convention.
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About Construction Management and Estimation
Construction management covers planning, scheduling, resource control, contracts, procurement, site organisation, safety, quality assurance and project documentation. Estimation includes quantity take-off, rate analysis, bill preparation, valuation and cost control, with attention to the difference between direct and indirect costs and between an estimate, a tender and a final account.
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