Project cost control becomes clearer when three different ideas are separated: committed cost, actual cost and forecast cost. Treating them as the same number hides risk.
Committed cost
Committed cost represents approved obligations such as purchase orders, subcontracts or other commitments. Cash may not have been paid yet, but the project has already made a commercial decision.
Actual cost
Actual cost is the cost recognized from invoices, expenses, payroll, consumption or other accounting events according to the organization’s rules. It is the historical cost already incurred.
Forecast cost
Forecast cost estimates the final or remaining cost. It combines what has already happened with expected future work. In EVM, Estimate at Completion and Estimate to Complete are common forecast concepts.
Why all three belong on one dashboard
A project can look healthy if only actual cost is shown while large purchase orders remain unbilled. Combining budget, commitments, actuals and forecast provides a more realistic picture of exposure.
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