Actual Cost:
Noun
1. The real or factual expense incurred in the production, acquisition, or completion of a project, task, or product. It includes all direct and indirect costs associated with the endeavor, such as materials, labor, overheads, and any other expenses directly related to the project.
2. In accounting, the actual cost refers to the amount paid or spent on a particular item or service, as opposed to the estimated or budgeted cost. It is the precise monetary value that is recorded in financial statements or reports.
3. In project management, the actual cost represents the total expenditure made during the execution of a project, including both planned and unplanned expenses. It is used to evaluate the project’s financial performance and compare it with the budgeted or estimated cost.
4. The actual cost is often used as a benchmark for future planning, decision-making, and cost control measures. It provides an accurate assessment of the financial resources utilized and helps in determining the profitability, efficiency, and effectiveness of a project or business operation.
Actual cost refers to the real or true cost incurred in the production or acquisition of goods or services. It is the total amount of money spent on the inputs used in the production process, including direct costs such as materials, labor, and overhead expenses. Actual cost is often used in financial and accounting contexts to determine the profitability and efficiency of a business or project. It is important for businesses to accurately calculate and track actual costs to make informed decisions, evaluate performance, and comply with financial reporting requirements.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/actual-cost/
- Modern Language Association (MLA):Actual Cost. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/actual-cost/.
- Chicago Manual of Style (CMS):Actual Cost. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/actual-cost/ (accessed: May 09 2024).
- American Psychological Association (APA):Actual Cost. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/actual-cost/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts