A garments factory has 60 employees.Out of these 60 employees, 20% i-e 12 workers are involved in aparticular project. The remaining is not directly involved in thatproject. Out of the given budget of the project, the factory isfacilitating and giving 80% of their total employees who are 48 innumber and giving extra benefits to them. In connection with theproject, the factory is working on a shipment. It has been observedat the end of delivering the shipment that the entire project givesless profit than expected. The actual cost on that particularproject is more than the estimated cost.

Identify which factor(s) causes the increase in cost and why thefactory management is unable to attain the expected profit out ofthe given budget? Also suggest measures for the factory managementthat how could they control the cost on that particular project?

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