Planned value is the value of the work which we are supposed to have on the deadline date. While the actual cost is what the task actually finish up costing when the project completes. These both values are an important factor in monitoring and controlling phase. Actual cost is based on the time as the project progresses. There are many other aspects of the project that can affect the cost value. Projects can be designed while keeping all the risk in the mind. Having the actual cost either higher or lower than the planned value determine how well the budget was taken care of and cost variance throughout the project.