Doubt in Control account ID and WBS ID

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EsakkiMuthu
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Doubt in Control account ID and WBS ID

Postby EsakkiMuthu Thu Jan 07, 2016 12:01 pm

Your have now finished WBS for your project. Your financial controller has asked you how much the budget for control account #2 is. What number would you provide ?

Image

My answer was sum all the activities on 2 which is ( 100+10+50+80+5+15+300 = 560 )

But the correct answer is Control Account 2 = 100+80+300=480

So I am confused, why we took only first level activity. I understand what is control account. But what is the link between Control account ID and WBS ID ?

Can anyone help me to understand this? Thanks
Regards
Esakki
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ankitsinghal.btsl
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Re: Doubt in Control account ID and WBS ID

Postby ankitsinghal.btsl Mon Jan 11, 2016 2:01 pm

Control accounts are for financial control purpose. It is like you have different costs for different activities in the project, eg one for development, one for testing, one for training, one for admin activities and so on. Now as finance controller/department/person wants to group those costs under some high level categories. This is used to allocate fund or track expenses.

For example, in my company, development and testing are kept in same control account, while training and admin are kept separate.

WBS ID is an identifier for each work item that you have in your WBS structure. It's hierarchical.
So when you say cost for WBS ID 2.1 is x dollars, it includes cost for all its subitems. Subitems like 2.1.1 or 2.1.2 are used to break the cost further, if required.
The total of costs of all WBS items at a particular level should be less than or equal to cost of its parent.

As the answer to this question is concerned, as you are adding cost at 2.1, you don't need to consider 2.1.1 and 2.1.1.1

Ankit Singhal
EsakkiMuthu
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Re: Doubt in Control account ID and WBS ID

Postby EsakkiMuthu Tue Jan 12, 2016 4:03 am

ankitsinghal.btsl wrote:Control accounts are for financial control purpose. It is like you have different costs for different activities in the project, eg one for development, one for testing, one for training, one for admin activities and so on. Now as finance controller/department/person wants to group those costs under some high level categories. This is used to allocate fund or track expenses.

For example, in my company, development and testing are kept in same control account, while training and admin are kept separate.

WBS ID is an identifier for each work item that you have in your WBS structure. It's hierarchical.
So when you say cost for WBS ID 2.1 is x dollars, it includes cost for all its subitems. Subitems like 2.1.1 or 2.1.2 are used to break the cost further, if required.
The total of costs of all WBS items at a particular level should be less than or equal to cost of its parent.

As the answer to this question is concerned, as you are adding cost at 2.1, you don't need to consider 2.1.1 and 2.1.1.1

Ankit Singhal


Thank you so much Ankit.
Regards
Esakki
PMI-ACP, PMP
manishpn
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Re: Doubt in Control account ID and WBS ID

Postby manishpn Sun Jan 17, 2016 12:17 pm

good explanation Ankit
Br,
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Housam Bassal
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Re: Doubt in Control account ID and WBS ID

Postby Housam Bassal Sun Dec 04, 2016 1:26 pm

it was very clear explanation , thank you.
Housam Bassal
Ecuador - Quito
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