What is AC an abbreviation for in project performance measures?

In project performance measures, "AC" stands for Actual Cost. This term is crucial for evaluating a project's financial health. Actual Cost refers to the total expenses incurred for work completed during a specific time period. It includes all costs such as labor, materials, equipment, and overhead.

Understanding Actual Cost is vital for calculating variances in project management, particularly in conjunction with other measures like Planned Value (PV) and Earned Value (EV). By comparing AC with these other metrics, project managers can assess whether a project is on budget, determine cost overruns, and take corrective actions as necessary.

The emphasis on Actual Cost helps in understanding the real financial impact of the project compared to what was budgeted and what value has been earned. This measurement is foundational in frameworks like Earned Value Management (EVM), which integrates project scope, schedule, and cost for performance evaluation.