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Proactive applications of cost measurement and corrections

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Variance between budget projections and budget performance is inevitable. Is a proactive application of cost measurement and corrective actions a realistic approach to minimize variance?

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Cost measurement and corrective actions are definitely steps in the correct direction to minimize future variances. Basically, when we deal with cost measurement and corrective actions, we're dealing with studying the variances between the projected budget and the actual budget, and we're then taking it one step further to determine the root cause of the variance. In the majority of the cases, the variance reason can be identified. We then can take those causes and use a proactive approach of corrective action combined with cost measurement to reduce ...

Solution Summary

Variance between budget projections and budget performance is inevitable. Is a proactive application of cost measurement and corrective actions a realistic approach to minimize variance?

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