What is Actual Cost (AC)?

Actual Cost (AC) is the actual expenses incurred for performing work or a project at a specific point in time. In project management methodology based on Earned Value Management (EVM), AC reflects the real monetary costs that have already been made.

For example, if a task was planned to cost $1000, but currently, $800 has been actually spent, then AC equals 800. This value is used together with Planned Value (PV) and Earned Value (EV) to assess the project's efficiency and progress.