Please help with Question 2 from questions below

Justin Jordan has been named project manager of the process. Justin is an experienced executive and feels General Sensor Company's new sensor manufacturing comfortable with his ability in estimating costs of proprocess project. Sensors are extremely price sensitive. jects. However, the recent firing of his colleague has General has done a great deal of quantitative work to made him a little gun-shy. Only one stage of the fourbe able to accurately forecast changes in sales volume stage sensor manufacturing process is being changed. relative to changes in pricing. Justin has detailed cost information about the majority the model that the company uses. He insists that all volved in the new modified process stage are unclear projects affecting the manufacturing costs of sensors at this point. Justin also believes that the new modifiberunagainstthemodeltogeneratedatatocalculatethereturnoninvestment.Thenetresultisthatprojectcationswillcausesomeminorchangesintheotherthreestages,butthesepotentialchangeshavenotyet thereturnoninvestment.Thenetresultisthatprojectmanagers,likeJustin,areunderagreatdealofpres-threestages,butthesepotentialchangeshavenotyetbeenclearlyidentified.Thestagebeingaddressedby sure to submit realistic budgets so goo-go project the project represents almost 50 percent of the manudecisions can be made quickly. Guy has canceled several projects that appeared marginal during their feasifacturing cost. bility stages and recently fired a project manager for 1. Under these circumstances, would Justin be The project was killed early in the design stages, and Questions six months later a competitor introduced a similar senwise to pursue a top-down or a bottom-up sor that proved to be highly successful. budgeting approach? Why? 2. What factors are most relevant in terms of creat- Justin's dilemma is how to construct a budget that accurately reflects the costs of the proposed new