In many projects, there is often a noticeable difference between the estimated project cost and the cost budget, with the cost budget being set at 20% more than the initial project cost estimate of R137,500.

1. Explain why this difference exists and how the cost budget is determined. 

2. Provide a detailed explanation of the factors involved in arriving at the cost budget and justify the importance of having this budget in project management.

 

 

Answer rating: 100% (QA)

1 The variance between the estimated project cost and the cost budget arises due to the inherent unc... View the full answer