actualcost

Actual cost is the total amount of money actually spent on a project, activity, or work package during a defined period. It records cash outlays and other expenditures incurred and charged to the project, including direct costs and allocated overheads. In many software tools, a field named actualcost stores this figure, typically updated as invoices are paid or payroll is processed.

In earned value management (EVM), Actual Cost (AC) is a key metric representing the cumulative cost incurred for the work performed to date. It is compared with Earned Value (EV) and Planned Value (PV) to assess cost performance. Cost variance (CV) is EV minus AC; the Cost Performance Index (CPI) is EV divided by AC. A CPI less than 1 indicates cost overruns relative to the value of work completed.

AC can be reported for a specific period or cumulatively from project start. Sources include supplier invoices, payroll, equipment usage, and allocated overheads. Because AC is based on accounting records, it can differ from budgeted or estimated costs, which reflect planned or forecasted spending.

Usage and limitations: AC supports forecasting cost to complete (ETC) and estimate at completion (EAC) calculations, and informs management about spending efficiency. However, AC depends on cost accounting practices, timing of accruals, and scope changes; inconsistent charging or delayed invoicing can distort cost performance measures. In agile or evolving projects, AC should be interpreted alongside EV, PV, and other metrics.