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Discuss the reasons for cost overruns and identify ones that would be easy to correct. What...

Discuss the reasons for cost overruns and identify ones that would be easy to correct. What reasons would be most difficult to correct? Why?

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Answer #1

Cost overruns means the unexpected increase in the costs of the organisation.

Reaons for cost overruns:

The most important reason for this is lack of proper planning of the various costs in the business.When the business does not plan its activities and cost in a good maaner, then such things happen.Also,when the company does not care about the small amount of costs they are incurring, then also such things happen because the company sometimes ignore the small amount of costs which result in many problems for the organization.

I would say that the company should have a proper planning for all the costs they have to incurr. This will help them to reduce their costs and they will have full knowledge of the costs the organization is incurring.Also the organization can take advice of various experts so that they can reduce their costs as much as possible.

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