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Utilize formulas to gauge whether your project is below, on, or above budget, offering a quick and efficient way to monitor your project’s financial standing throughout its development. Begin by populating the actual cost column with numerical values, adjusting them as necessary if this were an actual project. For the exercise’s purpose, enter arbitrary numbers in the actual cost column, ensuring a mix of values higher, lower, and equal to the estimated costs. Format these numbers in the actual cost column as currency for clarity.
Calculate the variance between estimated and actual costs for each line item using a formula, with the results displayed in the Net column. Google Sheets formulas initiate with an equals sign, followed by the specified formula. In this scenario, subtract the actual cost from the estimated cost (cell C2 minus D2). Copy this formula throughout the Net column by clicking on the cell containing the formula, grabbing the handle in the lower right-hand corner, and dragging it down the column to apply the formula to the entire line item list. Double-check that the formula has copied correctly, as it should automatically update cell references. Lastly, ensure that the numbers in the Net column are formatted as currency, contributing to a clear and organized appearance, emphasizing specific sections for improved information conveyance.