Final answer:
A variance in the cost or schedule of a project signifies a deviation from the original plan, pointing out issues that may need correcting for the project to be successful.
Step-by-step explanation:
A variance in the cost or schedule of a project does not suggest that the project performance is going as planned. Rather, a variance indicates a deviation from the project plan, which could mean that the project is either over or under budget, ahead of or behind schedule. This is an important project management concept as monitoring variances helps managers to identify and address issues promptly.
In project management, the term variance usually refers to the difference between what was planned and what is actually occurring. For example, if a project is over budget, this would result in a cost variance. Similarly, a schedule variance would occur if a project is taking more time to complete than was originally allocated. A variance indicates that adjustments might be necessary to ensure project success.