Practical sheet | REF: FIC1700 V1

Identify the different causes of cost variances

Author: Jean-Pierre PAYRE

Publication date: December 10, 2020 | Lire en français

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5. Set up action plans

In this step, we're going to talk about a type of drift for which the financial controller can take direct action by proposing unconventional solutions.

5.1 Identifying the problem

At the start of the project, one activity was on the critical path and had no clearly identified margin. After discussions with the batch managers, the financial controller discovers that the cost of this activity is mainly linked to the delivery of a technical milestone planned with a supplier for which the technical specification is unclear, and which presents a risk of significant additional cost if the supplier's solution is not mature.

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