What is a key limitation of a single Work Breakdown Structure (WBS) regarding funding?

A key limitation of a single Work Breakdown Structure (WBS) is that it can only maintain one Line of Accounting. This is crucial when it comes to budgeting and funding because a Line of Accounting represents the financial categories and codes that specify how funds are allocated and tracked within a project.

Having a single Line of Accounting means that all costs associated with the WBS must be tied to that one funding source, which can create challenges if the project requires funding from multiple sources or if there are different funding requirements for various components of the project. This limitation restricts the ability to manage funds more flexibly and can complicate financial reporting and tracking across different funding streams.

In the context of project management, understanding the implications of having a WBS tied to only one Line of Accounting helps project managers anticipate funding issues that could arise, such as the inability to utilize additional sources of funding effectively within the same project framework.