What measurement process compares planned data to actual data?

• A. Post project reviews
• B. Benchmarking
• C. Variance analysis
• D. Stopping to review progress essential to good business practice.

Answer: (C)

Variance analysis is the measurement process that compares planned data to actual data, turning the difference into a clear picture of how far off you are and why it happened. By calculating variances for costs, timelines, or resources, you can see whether you’re over or under budget and ahead or behind schedule, and by how much. This quantifies the gap and guides you to investigate the causes—price changes, scope adjustments, or inefficiencies—and to forecast future performance so you can adjust plans, budgets, or timelines accordingly. In interior design practice, for example, you might compare the estimated cost of finishes with the actual invoices to identify overspending and determine whether the issue lies in material prices, quantity takeoffs, or change orders. This approach differs from post-project reviews, which occur after completion to assess overall outcomes, benchmarking, which compares performance to external standards, and simply stopping to review progress as a general management practice.