HKSM

The amount of money actually spent or accrued for the work that has been completed on an activity within a defined reporting period.

Key Points

• AC is the real expenditure tied to work accomplished, taken from accounting or cost records.
• It can be reported for the current period or cumulatively, at the activity, WBS, or project level.
• Used in earned value analysis (e.g., CV = EV − AC, CPI = EV ÷ AC) to assess cost performance.
• Includes direct and indirect costs that have been incurred; it excludes future commitments not yet realized.

Example

A team planned to spend $20,000 this month on a testing activity. Payroll and invoices processed for that work total $18,500 this month. The AC for the month is $18,500, even though a $3,000 purchase order was issued but not yet billed.

PMP Example Question

Which statement best describes Actual Cost (AC)?

1. The budgeted cost for work scheduled during the period.
2. The actual expenditure for the work completed during the period.
3. The forecasted cost to finish the remaining work.
4. The budgeted value earned based on completed work.

Correct Answer: B — Actual expenditure for completed work in the specified period

Explanation: AC reflects the real costs incurred for work performed in a given time frame, not the planned or earned values, and not future forecasts.