planned value is the value that should have been earned during that term. It defines that a percent of work should have been done in a particular given term. This value when calculated helps to determine that, Is the project Ahead, On or behind the time. Thus the measuring of this value can help take action to control If the project is behind the time and there is more work to be done to keep the project on time. While the actual cost is the expenditure that has been done till this time of project. This measure helps determine that what should have spend and what is the actual expenditure till now. Further controls over expenditure can be done to be on budget at the right time with measure of the actual costs.