LG324DLF2A2020 Contract Management Law: Open Forum

Lg324dlf2a2020 Contract Management Lawthe Open Forum Is A Unit Parti

LG324DLF2A2020 Contract Management & Law The open forum is a unit participation that is separate from the discussion questions, and will be part of the deliverables for units 2-6. The forum posts will be worth 50 points each. The forum is designed to allow the student to demonstrate understanding and application of the material by performing an analysis of an article that is relevant to any of the topics covered during the unit. The student may select any major topic covered during the unit, conduct an internet search to find an appropriate article that relates to the topic, and post an analysis of their finding. The analysis must include how the article is relevant to the unit topics, as well as a critical assessment that demonstrates understanding of the legal concept.

It will be on “Written Contracts and Cyber-Commerce”. You’re in charge of a project, but you don't have control of half of the cost, and your boss holds you responsible for the whole project. Can Activity-Based Costing help you in controlling the cost, even if you don’t control the whole ball of wax? How would you explain this to your boss, and still keep your job?

Paper For Above instruction

In contemporary project management and contract law, understanding the nuances of cost control is vital, especially when responsibilities are unevenly distributed across project stakeholders. The scenario where a project manager is held responsible for the entire project's costs, despite only controlling part of it, highlights the importance of effective cost management tools, such as Activity-Based Costing (ABC). This paper explores how ABC can aid in cost control under such circumstances, discusses its relevance to legal considerations in contracts, particularly written contracts and cyber-commerce, and explains strategies for communicating these concepts to a supervisor to maintain professional standing.

Activity-Based Costing (ABC) originated in the manufacturing sector but has since been widely adopted in service industries and project management to provide more accurate cost allocation. Unlike traditional costing methods, which allocate costs based on broad averages—such as labor hours or machine hours—ABC assigns costs to activities based on their actual consumption of resources. This methodology facilitates a granular understanding of where and how costs are incurred, allowing managers to identify high-cost activities and optimize processes accordingly.

In the context of a project where control over costs is partial, ABC proves especially beneficial. When project managers lack direct authority over certain components—be they external vendors, subcontractors, or internal departments—they often find it difficult to influence or predict costs accurately. ABC helps bridge this gap by providing a transparent view of cost drivers associated with different activities. For example, if a project’s total cost includes several external services, ABC can identify which activities—such as procurement or quality inspections—are most expensive and why. Understanding these cost drivers enables the project manager to develop targeted strategies to mitigate expenses, negotiate better terms, or allocate resources more efficiently.

Legal considerations are intertwined with cost management in contracts, especially within the scope of written agreements and cyber-commerce. Contracts often specify the scope of work, payment terms, and liability clauses that can impact project cost control. In cyber-commerce, where digital transactions and remote collaborations are prevalent, ambiguity or lack of clear contractual provisions can lead to disputes over costs and responsibilities.

Applying ABC within contractual frameworks enhances legal clarity by delineating specific activities responsible for costs. For instance, contracts can specify which party bears costs associated with particular activities, making responsibility clear and reducing disputes. Further, in cyber-commerce environments, where automation and digital processes influence costs, ABC can be integrated with digital accounting systems to ensure transparency and real-time cost tracking. This is essential when contractual obligations involve performance-based payments or penalty clauses tied to cost overruns.

To demonstrate the effectiveness of ABC to a supervisor, especially in situations where control is limited, it is essential to communicate its benefits with clarity and strategic relevance. One key approach is to emphasize that ABC provides a detailed insight into cost behavior, enabling better decision-making, even when full control over all activities is absent. By illustrating how ABC uncovers hidden inefficiencies and facilitates targeted cost reductions, the project manager can justify its adoption as a tool for responsible cost management.

Additionally, explaining that ABC aligns with legal principles of transparency and accountability reinforces its value. In contractual settings, precise cost information supported by ABC can serve as evidence during audits or dispute resolutions. Presenting case studies or empirical data showing how companies successfully implemented ABC to control costs without direct control over all activities can further bolster this argument.

In terms of maintaining one's job, framing ABC as a proactive, transparent, and legally compliant approach to cost management is vital. It demonstrates initiative and an understanding of complex project dynamics while addressing the concerns of supervision about liability and oversight. Furthermore, proposing regular reporting based on ABC data offers ongoing visibility into project costs, fostering trust and collaboration with stakeholders, including bosses who might be concerned about accountability.

In conclusion, Activity-Based Costing offers a practical solution for managing and controlling project costs even when control is partial. Its detailed approach to cost allocation enhances transparency, supports legal clarity, and improves decision-making processes. Communicating these benefits effectively to supervisors—highlighting how ABC aligns with legal principles and project objectives—can help project managers retain professionalism, demonstrate accountability, and secure support for integrating ABC into project management practices in the legal and cyber-commerce context.

References

• Cooper, R., & Kaplan, R. S. (1988). Measure Costs Right: Make Value-Cadding Visible. Harvard Business Review, 66(5), 120-132.
• Kaplan, R. S., & Anderson, S. R. (2004). Time-Driven Activity-Based Costing. Harvard Business Review, 82(11), 131-138.
• Drury, C. (2013). Management and Cost Accounting. Cengage Learning.
• Nair, A. (2008). A Survey of Activity-Based Costing and Activity-Based Management in India. Journal of Accounting & Organizational Change, 4(1), 68-86.
• Business Models Inc. (2021). Activity-Based Costing in Modern Enterprises. Retrieved from https://businessmodelsinc.com/abc-modern-enterprises
• Langfield-Smith, K., Thorne, H., & Hilton, R. (2012). Management Accounting: Information for Decision-Making and Strategy Execution. McGraw-Hill Education.
• Shank, J. K., & Govindarajan, V. (1993). Strategic Cost Management: The Value Chain Perspective. Journal of Cost Management.
• Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
• International Federation of Accountants (IFAC). (2018). Guidelines for Cost Management and Control in Digital Environments. IFAC Publications.
• Smith, P. (2020). Contract Law and Digital Contracts in E-Commerce. Journal of Cyber Law, 15(2), 45-62.