1. Finance
  2. Budget & Expense Management

Software Development Cost Variance


The difference between the budgeted cost for software development and the actual cost incurred. Indicates how well the company is managing its software development expenses in comparison to what was budgeted.


Budgeted Cost for Software Development − Actual Cost for Software Development


If a company budgeted $2 million for a software project but ended up spending $2.5 million, the variance would be -$500,000.

Other KPIs in Budget & Expense Management