Software Development Cost Variance
Money
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.
Formula
Budgeted Cost for Software Development − Actual Cost for Software Development
Example
If a company budgeted $2 million for a software project but ended up spending $2.5 million, the variance would be -$500,000.