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-Why is it necessary to track actual and committed costs once a project starts?
Once the project starts it is necessary to keep track of the actual cost and the committed cost as they can be compared with the CBC. [ To keep track of he actual cost it is necessary to maintain an information system to collect data on a regular and timely basis. Such a type of system should include all the details of money spend over a period of time. Committed costs are also known as
commitments or encumbered costs. Costs are committed when a resource needed for the project is ordered. ]
Expert answered|rhyann24|Points 1965|
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Asked 10/16/2011 10:58:59 AM
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