Cost Overruns at Alpha
Not what you're looking for?
Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers') original estimates. Furthermore, all cost overruns must come out of the functional managers' budgets, whether they be overhead or otherwise, not the project budget. What are the advantages and disadvantages of this approach?
Purchase this Solution
Solution Summary
The solution outlines how to handle cost overruns at Alpha company including the implications of making functional managers fully in charge of creating and standing by a budget. Alpha is examined.
Solution Preview
The advantages of such an arrangement include the fact that the managers will, most likely, be more accurate in forecasting their expenses so as to not have to supplement projects with funds from their overall budget. Accountability is always an advantage because it forces employees to do things with a greater level of due diligence.
The disadvantages of such an arrangement include the fact that when faced with the possibility ...
Purchase this Solution
Free BrainMass Quizzes
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce