Actual Cost
The real cost associated with purchasing materials and services, and paying internal personnel. A standard cost system tracks actual usage, as defined by hours or units consumed, based on a standard value, to calculate and track variances versus the standard hours or units; an actual cost system (often used in to-order environments) attempts to assign the true cost of every purchase, material issue and labor activity to jobs and products
Actual Cost
The real cost associated with purchasing materials and services, and paying internal personnel. A standard cost system tracks actual usage, as defined by hours or units consumed, based on a standard value, to calculate and track variances versus the standard hours or units; an actual cost system (often used in to-order environments) attempts to assign the true cost of every purchase, material issue and labor activity to jobs and products
