It is the first element of earned value management. Planned Value is the approved value of the work to be completed in a given time. It is the value that should have earned as per the schedule. Planned Value (PV) is the authorized budget assigned to work to be accomplished for an activity or WBS component. This is the second element of earned value management. Actual Cost is the total cost incurred for the actual work completed to date. In other words, it is the amount of money you have spent to date. Actual Cost (AC) is the total cost incurred in accomplishing work performed for an activity or WBS component. Planned value and actual cost is important because it includes the cost elements such as direct costs, direct hours and indirect costs which can be traced from actual invoice. It helps the project to be in control and in budget.