An Accounting Variance threshold value is expressed as a monetary value. An issue is generated if the Accounting Variance (the difference between the activity's budgeted or planned cost according to the schedule and the actual cost of performing the activity) falls beyond the threshold values.
Accounting Variance is calculated as Accounting Variance = Planned Value Cost - Actual Cost.
A negative value indicates that actual costs have exceeded the scheduled costs. A positive value indicates that actual costs have not reached the scheduled costs.
If the lower threshold value is 0, an issue is generated as soon as actual costs are greater than scheduled costs.