Measures the difference between the actual cost of providing services and the budgeted cost.

What it Measures ?

Difference between planned and actual service costs.

Relevant StakeHolders 

Finance, Project Managers

In-depth Use Case / Real-world Example

Service Cost Variance is calculated by subtracting the actual service costs from the budgeted costs. For example, if the budget for service delivery is ₹10 lakhs but the actual cost is ₹12 lakhs, the variance is ₹2 lakhs. This KPI helps track cost control and operational efficiency in service operations. A high service cost variance may indicate inefficiencies or the need for better cost management practices.