BSBPMG514 pt2.docx - Formative Activity 4 The project...

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FormativeActivity 4The project manager is concerned about the internal control procedures currently in place. Why is it important that these be reviewed and, if necessary, modifications made?(150 words)The tools and techniques required to complete the cost control process can include the cost change control system, work performance measurement (earned value management), budget forecasts, organisational process assets, change request, project management plan updates and project document updates. Sometimes a project manager must add or remove costs from a project. The cost change control system is part of the integrated change control system and documents the procedures to request, approve and incorporate changes to project costs. When a cost change enters the system, there is appropriate paperwork, a tracking system and procedures that project manager must follow to obtain approval on the proposed change. A cost change control system, documented in the cost management plan, define the procedures by which cost baseline can be changed. It includes the forms, documentation, tracking system and approval levels necessary for authorising changes. Activity 51 Accounting information is used to inform decision-making but it has limitations. Conduct appropriate research into financial decision making in a project management context and describe what the accountant can do to minimise the limitations of management accounting? (150 words)Management accounting assist management in taking decisions scientifically. It includesdecision tools such as marginal costing, differential costing and techniques like linear programming, decision theory, etc. It provides all types of information in time.Under the management accounting system, many alternatives are developed to solve a problem and submitted before the management.

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