a new organization designed to perform low-cost projects. The problem was that these projects could not withstand the expenses needed for formal
Please help me answer this question. Thank you in advance
a new organization designed to perform low-costprojects. The problem was that these projects could not withstand the expensesneeded for formal divisional cost estimates. For five projects, Paul's estimates were"right on the money." But the sixth project incurred a cost overrun of $20,000 inthe Manufacturing Division. In November 1977, a meeting was called to resolvethe question of "Why did the overrun occur?" The attendees included the general manager, all division managers and directors, the project manager, andPaul. Paul now began to worry about what he should say in his defense. QUESTION: 1. What do you think happened that caused the overrun? 2. What should Paul need to defend the estimates heprovided? 3. What estimation method does Paul used in his estimates?
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