Monitoring and Controlling Organizational Performance

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RAB Function
RAB is not just a mere cost estimate. RAB has a very crucial role in every project or business activity.

Quoting Milestone Inc, the following are the 3 main functions of the RAB:

1. Set Financial Targets
An organization or project can determine how much funding is needed to achieve a goal or complete a project.

For example, in a construction project, the RAB helps to plan how much vietnam whatsapp data funds should be allocated for each stage of work.

With the RAB, all parties know how much money can be spent, and where expenses should be focused so that the project can be completed on time and within budget.

From the RAB that has been prepared, the responsible party can monitor the development of expenditure and compare it with the budget that has been set.

If it turns out that the expenditure is greater, then the RAB can be a tool to see which areas are deviating.

This way, it is easier for the management team to take corrective action. For example, reducing costs in certain areas, or shifting resources to areas that need them more.