Estimated Actual Costs
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: Estimated Actual Costs are reasonable estimates of costs already incurred for completed work that haven't yet been posted in the formal accounting system.
When work is finished and earned value (BCWP) is claimed, the actual cost may not have made it through accounts payable or payroll yet — Estimated Actual Costs fill that gap with a reasonable projection. They're folded into the reported ACWP so cost and earned value stay aligned in the same reporting period, and they're later reconciled against the real, posted costs as they come through the accounting system.
Why it matters
Without Estimated Actual Costs, ACWP would understate true spending whenever there's a lag in accounting, making cost performance look artificially better than it is. Including and later reconciling these accrued estimates keeps ACWP an honest, timely reflection of what work actually cost.
Also known as
Accrued Actuals
Used in
Included within reported Actual Cost of Work Performed (ACWP)
See also
FAQ
Why not just wait for real accounting data instead of estimating?
Waiting would delay cost reporting and could misalign ACWP with the BCWP already claimed for the same work — estimates keep reporting timely and aligned.
Are Estimated Actual Costs ever corrected later?
Yes — they must be reconciled and adjusted once the real costs are posted in the financial accounting system.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
