BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Underestimation of project cost leads to ____
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Time under run
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Cost under run
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Time over run
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Cost over run
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Explanation:
Detailed explanation-1: -A cost overrun, also known as a cost increase or budget overrun, involves unexpected incurred costs. When these costs are in excess of budgeted amounts due to a value engineering underestimation of the actual cost during budgeting, they are known by these terms.
Detailed explanation-2: -Since cost estimates are the basis for decision making regarding project selection, underestimation lead to selection of project with significant cost risks.
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