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Cost Overruns happen when the actual expenditure on your project exceeds the planned/allocated budget.
Lets say you have budget to hire 3 people and due to some reason you hired 4 people, then your project budget can be expected to overrun within a few months of operation.
Project Managers use processes called "control cost" to control project expeditures
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What is the difference of the monitoring and Controlling?
Monitoring means supervising and gathering data about what is happening in the project. For example, you may gather details about the money that is spent on the project and then compare it with the plan you had made during the planning stage. Once you gather the information you will know whether the project is having a cost overrun or we are within budget. Controlling means taking necessary steps to make sure the project is on track. Lets say the project is having a cost overrun, you need to take steps to cut costs and bring the cost back into plans.
What is the formula for calculating budget overrun?
Overrun = cost - budget
What is Project cost control vs approved budget in project management?
Project cost control is comparing the actual project cost against planned project cost.
Is overran an abstract noun?
No, the word 'overran' is not a noun; overran is a verb, the past tense of overrun, which means to spread over or occupy in large numbers; to conquer or occupy a territory by force.The word overrun is also a noun, a word for the amount that something exceeds a limit. Examples:Verb: This new model will overrun the competition in no time.Noun: The cost overrun will have to be made up.
If the opportunity cost of capital for a project exceeds the projects IRR then the project has a NPV negative?
If the opportunity cost of capital for a project exceeds the Project's IRR, then the project has a(n)
Importance cost management in a project?
Cost Management is critical to Project Management. A project cannot be initiated with Cost Management not in place, since cost management is about estimating, budgeting, monitoring, and analyzing the cost information.
Importance of cost control in project management?
Importance of cost control in project management?
The cost of the Stuart highway and project background?
the cost of the Stuart highway and project background in 1978
What is an oppourtunity cost?
When Mutual exclusive decision is to be made or projects to be selected, the benefit which is left due to selection of one project instead of other project is the 'Opportunity Cost' for selecting one project over other. Example: Project 1 benefit = 100000 Project 2 benefit = 200000 Opportunity cost for project 1 = 200000 Opportunity cost for project 2 = 100000
What is cost of project?
costs that are used to complete the performance of the project
What is cost- benefit approach?
Cost/benefit analysis is a systemetic approach for analysing any project for approval under which all benefits form specif project as well as cost associated with that project are listed and if benefits exceeds the cost then project is considered as feasable and acquired otherwise rejected.
What is oppritunity cost?
In the process of decision making between mutually exclusive projects any cost which is left due to selection of alternative project is called the opportunity cost. For Example: if a person select project a and have to loss 1000 due to selection of project a, or if person select project b and loss 2000 due to it then project a has an opportunity cost of 1000 while project b has 2000.
