List some of the pitfalls in cost estimating. What steps can a manager take to correct cost overruns?
Answer to relevant QuestionsWhy do consulting firms frequently subsidize some projects? Is this ethical?Would any of the conflict resolution methods described in the previous chapter be useful in the budget planning process? Which?What extra expenses did the contractor incur in order to finish ahead of schedule? How can one tell whether they are spending too much to finish early, thereby saving not only time but also overhead costs?Using the cost estimation template and Actuals in Figure 7-5, compare the model in the figure with the following estimates derived from a multiplicative model. Base your comparison on the mean bias, the MAR, and the tracking ...What price per vehicle did the army pay? Although not the hundreds of millions often paid for a new plane, why such a high price compared to, say, a car?
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