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Actual Cost (AC)
The real cost associated with purchasing materials and services, and paying internal personnel. A standard cost system tracks actual usage, as defined by hours or units consumed, based on a standard value, to calculate and track variances versus the standard hours or units; an actual cost system (often used in to-order environments) attempts to assign the true cost of every purchase, material issue and labor activity to jobs and products.
Total costs incurred that must relate to whatever cost was budgeted within the planned value and earned value (which can sometimes be direct labor hours alone, direct costs alone, or all costs including indirect costs) in accomplishing work during a given time period. See also earned value.
PCoE Oregon .Gov
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