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Target-Actual Comparison (TAC)

What is a Target-Actual Comparison? Definition and meaning

The target-actual comparison (short: TAC) is a juxtaposition of the target costs with those that have been incurred within a specific period of time (= actual costs). It serves as an instrument of controlling.

With the help of the target-actual comparison, a deviation of the actual costs can be determined and traced back to its cause.

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Frequently asked questions

What is a target-actual comparison used for?
The target-actual comparison is an instrument of project controlling. It sets the planned target costs against the actual costs incurred, so that deviations can be identified and traced back to their cause.
What is the difference between target and actual costs?
Target costs are the costs planned for a given period. Actual costs are the costs that were genuinely incurred in that period. The target-actual comparison sets the two figures against each other.