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manolo replied to the topic planned value vs actual costs in the forum Project Management Process and Medical Device Development 5 years, 12 months ago
In my opinion, it simple falls down to profit. The project is expected to launch at a certain time and make a certain amount of money. If you spend more than you were initially budgeted for, you’ll cut into the profit margin of the product. If you spend less, you increase the margin. If the project gets too expensive, the company may even want to put it on hold or scrap it altogether.