What is AC (actual cost)?

    Actual cost is the cost actually incurred for the work performed up to a given date.

    Also written as AC

    AC should cover the same scope and cut-off date as earned value. Including costs for work not yet measured, or leaving out accrued costs, distorts the cost performance index.

    Commitments such as placed orders are not actual cost until the work or goods are received.

    Worked example

    A project has a $12 million budget (BAC). At the reporting date, $5.2 million of work was planned (PV), $4.8 million has been earned (EV) and $4.55 million has been spent (AC). AC is $4.55 million.

    Related terms

    Earned value

    EV

    The budgeted value of the work actually completed by a given date.

    Formula and example

    Cost performance index

    CPI

    Shows how much value of work is earned for each dollar spent.

    Formula and example

    Cost variance

    CV

    The difference between the value of work completed and what it actually cost.

    Formula and example

    Commitment

    Money the project has agreed to spend, such as an awarded contract or purchase order, that hasn't yet been incurred as cost.

    PreviousEV (Earned value)NextSPI (Schedule performance index)

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