Question: Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers) original estimates.

Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers’) original estimates. Furthermore, all cost overruns must come out of the functional managers’ budgets, whether they be overhead or otherwise, not the project budget. What are the advantages and disadvantages of this approach?

Step by Step Solution

★★★★★

3.52 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Line managers will pad their estimates in order to protect themselves The advantages of such an arra... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

93-B-M-L-P-M (873).docx

120 KBs Word File

Students Have Also Explored These Related Management Leadership Questions!

Q:

What are the advantages and disadvantages of functional departmentalization?

Q:

What are the advantages and disadvantages of using short-term debt as a source of financing? Dan Barnes, financial manager of Ski Equipment Inc. (SKI), is excited but apprehensive. The companys...

Q:

What are the advantages and disadvantages of superheated steam compared to air as the heating medium? Why might superheated steam be superior to air for the drying of lumber?

Q:

14- 1 Do cost overruns just happen, or are they caused? 14- 2 Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their...

Q:

Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers') original estimates. Furthermore, all...

Q:

Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers') original estimates. Furthermore, all...

Q:

Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers') original estimates. Furthermore, all...

Q:

Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers') original estimates. Furthermore, all...

Q:

Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers') original estimates. Furthermore, all...

Q:

Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers') original estimates. Furthermore, all...

Q:

1. Evaluate the market attractiveness for EMR Innovations using industry analysis tools. 2.Identify potential target markets for the Lock-Awn Anti- Billowing Device, using a five-step process of...

Q:

The expanded accounting equation consists of assets, liabilities, common stock, dividends, revenues, and expenses. It can be used to reveal insights into changes in a companys financial position....

Q:

Which is true of monopolistic competition? (A) Firms earn long-run economic profits. (B) P = MR = MC = ATC. (C) Firms spend money to differentiate and advertise their products. (D) In the long run...

Q:

Sparrowhawk colonies. One of natures patterns connects the percent of adult birds in a colony that return from the previous year and the number of new adults that join the colony. Exercise 4.28 (page...

Q:

Which of the following can influence the selection of KPIs? A. Size and number of dashboards B. Type of audience and audience requirements C. Audience project management maturity level D. All of the...

Q:

Which of the following is not one of the six characteristics of a KPI? A. Predicts the present and the future B. Can be displayed with more than one icon C. Relevant to the success and failure of the...

Q:

Some metrics and KPIs may not be measured until well into the future because the measurement is based on the beneficial use of the deliverable. A. True B. False

Q:

Stock X has a standard deviation of return of 10%. Stock Y has a standard deviation of 20%. The correlation coefficient between the stocks is 0.5. If you invest 60% of your funds in stock X and 40%...

Q:

Stellar Plastics is analyzing a proposed project. The company expects to sell 12,000 units, give or take 4 percent. The expected variable cost per unit is $7.00 and the expected fixed cost is...

Q:

9/10 QUESTION 9 Lee Sun's has sales of $3,000, total assets of S2,500, and a profit margin of 5 percent. The firm has a total debt ratio of 40 percent. What is the return on equity? O a 6 percent b....