Difference between revisions of "Actual cost"

Latest revision as of 19:16, 10 July 2020

Actual cost is cost incurred (a historical or past cost), as distinguished from a budgeted or forecasted cost.

Actual cost. Cost incurred (a historical or past cost), as distinguished from a budgeted or forecasted cost.

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-[[Actual cost]] (also known by its acronym, [[AC]]) is the actual amount of money either paid for material or charged as labor, material, or overhead to a [[work order]]. In other words, [[actual cost]]s are 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.
+[[Actual cost]] is cost incurred (a historical or past cost), as distinguished from a budgeted or forecasted cost.
+==Definitions==
+According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]],
+:[[Actual cost]]. Cost incurred (a historical or past cost), as distinguished from a budgeted or forecasted cost.
+[[Category: Accounting]][[Category:Articles]]