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1. What is an appropriate technique to use for aggregating and tracking project costs on a multi-functional project team?
Require that all project purchase orders go through a single point in the organization which tracks the expenditures.
Have each person on the project team track their own costs and report them at the end of the project.
Use a common account in the finance system for all project costs across all departments.
2. What is the danger to project costs if you do not track purchase order commitments as well as expenditures?
The suppliers will double and triple invoice for deliverables on their purchase orders.
You may overcommit the amount that suppliers can invoice against the project and be surprised by a large overrun at the end of the project.
You may place multiple purchase orders for the same thing.
3. What is a good use of a project budget reserve when the project is partially complete?
Fund overruns of tasks when they occur.
Implement a risk mitigation strategy for a project risk that has occurred.
Save money for paying off corporate debt.
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