BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What is a Cost Constraint? In accounting, a cost constraint arises when it is excessively expensive to report certain information in the financial statements. When it is too expensive to do so, the applicable accounting frameworks allow a reporting entity to avoid the related reporting.

Detailed explanation-2: -In total, there are six major types of constraints of financial statements. These are costs and benefits, materiality, certain industry practices, conservatism, consistency principle, and timeliness principle.

Detailed explanation-3: -A cost constraint related to financial reporting is when the cost of obtaining the financial information outweighs the benefit. Under U.S. GAAP, if the cost of obtaining certain financial information is a constraint and results in excessive costs, then the entity is allowed to avoid reporting the financial information.

Detailed explanation-4: -Cost constraints include the project budget as a whole and anything of financial value required for your project. Items that may be a cost constraint include: Project cost. Team member salaries.

Detailed explanation-5: -The three primary constraints that project managers should be familiar with are time, scope, and cost.