ABC Inc's Need of a Work Breakdown Structure Model

1141 Words Jan 12th, 2018 5 Pages
This is because each project may involve a number of factors, each having its own dynamics that have a potential to implicate on the overall cost structure and thus each of these variables and their possible implications have to be taken into account in order ensure the efficiency of the project in terms of both cost and time.
Introduction
Unlike conventional forms of financial management, cost management has a backbone effect in any kind of project management as not only does it ensures efficiency in terms of costs, but also efficiency in terms of time and output. The aim to incorporate cost management in organizational operations especially when planning outputs or evaluating viability of a project, cost management helps giving out result oriented indicators that help in decision making that can reduce the level of risk of misjudgement (Richman, 2002). That said, cost management is based on a lot of assumptions, presumptions and fluctuating factors that may implicate the indicators given out by existing cost schedules. This calls for cost schedules to be flexible and keep enough room to accommodate any instability or unforeseen changes and also calls for making certain assumptions so that variables that can fluctuate at a high rate can be stabilized when making calculations.…