Elements of Cost (EOC)
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: Elements of Cost (EOC) are the major categories — such as labor, material, subcontract, and overhead — into which a project's direct and indirect costs are planned and recorded.
Elements of Cost break total project cost down into recognizable categories: direct EOCs like Labor, Material, Subcontract, and Other Direct Costs, and indirect EOCs like Overhead, G&A, and Cost of Money. Organizing costs this way makes it easier to plan budgets, track actual spending, and compare cost types across a project.
Why it matters
Breaking costs into Elements of Cost lets managers see not just how much was spent, but what it was spent on. That's essential for spotting overruns in a specific cost category, like labor running hot while material stays on track. It also keeps cost reporting consistent across Work Packages and projects.
Also known as
N/A
Used in
Cost planning and reporting at the Work Package and Control Account level
See also
Direct Costs
Indirect Costs
Applied Direct Costs
Other Direct Cost
Overhead
General & Administrative
FAQ
What's the difference between direct and indirect Elements of Cost?
Direct EOCs (like labor and material) can be traced to a specific contract or project, while indirect EOCs (like overhead and G&A) are shared costs allocated across multiple contracts.
Is "Cost of Money" the same as overhead?
No — Cost of Money is a separate indirect element representing the cost of capital invested in the business, distinct from overhead and G&A pools.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
