Actual Cost (AC)
DE: Istkosten (AC)
The realized cost incurred for work performed.
Detailed Explanation
Actual Cost is the realized cost incurred for work performed on an activity during a specific time period. Unlike PV and EV, there is no formula for AC — it is simply what has been spent. AC comes from the organization's accounting system.
AC must be measured consistently with how PV was planned. If PV includes only labor costs, AC should include only labor costs. If PV includes materials, overhead, and labor, AC must include the same cost categories for meaningful comparison.
AC is the third fundamental EVM value. It is compared to EV to calculate CPI (cost efficiency = EV/AC) and cost variance (CV = EV - AC). If AC exceeds EV, the project is spending more than the value it is producing — an unfavorable condition.
Key Points
- What was actually spent — no formula, just accounting data
- Must be measured consistently with PV cost categories
- Third fundamental EVM value alongside PV and EV
- Compared to EV for CPI and cost variance
- Comes from the organization's accounting system
- AC > EV means over budget (spending more than producing)
Practical Example
At month 6: team labor cost = EUR 380K, vendor invoices = EUR 150K, materials = EUR 90K, travel = EUR 20K. Total AC = EUR 640K. Compared to EV of EUR 580K: CV = 580K - 640K = -EUR 60K (unfavorable). CPI = 580K/640K = 0.91 — for every euro spent, only 91 cents of value is produced.
Tips for Learning and Applying
Ensure accounting provides AC data in the same cost categories as PV
Track AC at the control account level for meaningful analysis
Include all cost types: labor, materials, equipment, subcontracts, overhead
Reconcile AC data with accounting regularly to ensure accuracy
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