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Variance Analysis Thresholds

Variance Analysis Thresholds

EVM Terms Reviewed by forProject Technology - updated Sep 2026
Quick definition: Variance Analysis Thresholds are the dollar-amount and percentage criteria, set by the Project Manager, that determine when a Control Account Manager must complete a Variance Analysis Report.

Thresholds are typically established for Cost Variance, Schedule Variance, and Variance at Completion, and can vary by dollar magnitude or by level in the WBS. Crossing a threshold triggers formal written analysis rather than just informal tracking.

Why it matters

Thresholds keep reporting effort focused on the variances that actually matter, instead of requiring a written report for every minor fluctuation. That lets management attention go to the cost and schedule issues most likely to affect the project's outcome.

Also known as
N/A
Used in
Variance Analysis Report (determines when one is triggered)

FAQ

Are thresholds the same for every project?
No -- a Project Manager sets them specifically for each project, often varying by dollar amount and percentage.
What variances do thresholds typically cover?
Cost Variance, Schedule Variance, and Variance at Completion.
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