Project Management/PMBOK/Cost Management

< Project Management‎ | PMBOK

Purpose of every private organization is to maximize the profit and there are two ways to to maximize the profit

• To win the order at maximum highest price (That is not possible in this imperfect competition market)

• To reduce the maximum manufacturing cost by setting different standards, and then management try to achieve these standard.

Second option (controlling manufacturing cost) is in control of the organization that can be apply but it will be necessary that the higher management should accept this mentally, consider this a positive step for growth of the organization, and do not feel it burden / restrictions. Provision of actual data should be as easy as possible so that cost can be calculated near to actual. There should be no hesitation in provision of data because this data will be used especially for internal management and not for external bodies. ( Tax department etc.)