The simple fact ignored by most accountants, general management and project managers is that cost is an output from the management process, and pretending cost is a manageable input is a recipe for disaster.
Profit is the difference between the price received for doing work and the cost of doing the work. If the work is accomplished satisfactorily for less then the price that will be paid for the work the surplus is profit. From the perspective of a project manager, profit is…Continue
Only fools and the bankers who created the GFC think the future is absolutely predictable. The rest of know there is always a degree of uncertainty in any prediction about what may happen at some point in the future. The key question is either what degree of uncertainty, or in project management space what is the probability of achieving a predetermined time or cost commitment.
There are essentially three ways to deal with this uncertainty:
Option one is to hope the…Continue
Added by Patrick Weaver on October 13, 2013 at 5:51am — No Comments