Chapter 8 Cost Estimation and Budgeting 8.1 True/False 1) Direct costs are those clearly assigned to the aspect of the project that generated the cost. Answer TRUE 2) Material is an example of a cost that is recurring‚ variable and direct. Answer TRUE 3) An expedited cost is one that does not vary with respect to their usage. Answer FALSE 4) An order of magnitude estimate is usually more accurate than a ballpark estimate. Answer FALSE 5) Comparative estimates are more accurate than definitive
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COST ANALYSIS OBJECTIVES INTRODUCTION MEANING DEFINITIONS TYPES OF COSTS MONETARY COSTS REAL COSTS OPPORTUNITY COSTS ECONOMIC COSTS ACCOUNTING COSTS INCREMENTAL COSTS SUNK COSTS FUTURE COSTS PRIVATE‚ EXTERNAL AND SOCIAL COSTS FIXED / SUPPLEMENTARY / OVERHEAD COSTS VARIABLE / PRIME COSTS REPLACEMENT COSTS PRODUCTION COSTS SELLING COSTS CONTROLLABLE COSTS DIRECT COSTS INDIRECT COSTS SHORT RUN COSTS CURVES LONG RUN COSTS CURVES OBJECTIVES To understand the meaning of cost. To discuss different types
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How does resource scheduling reduce flexibility in managing projects? Meredith and Mantel (2000‚ 302) state that a schedule is the conversion of a project action plan into an operating timetable. As such‚ it serves as the basis for monitoring and controlling project activity and taken together with the plan and budget‚ is probably the major tool for the management of project. In a project environment‚ the scheduling function is more important than it would be in an ongoing operation because
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used to perform the measuring and controlling of the project costs. The Project Manager and Project Sponsor will review the following earned value measurements: 1. Schedule Variance (SV) 2. Cost Variance (CV) 3. Schedule Performance Index (SPI) 4. Cost Performance Index (CPI) 5. To Complete Cost Performance Index (TCPI) 6. Estimated Actual Cost at Completion (EAC) Schedule Variance (SV) is a measurement of the schedule performance for a project‚ and is calculated by subtracting the Planned Value
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INTERNATIONAL B-SCHOOL SUBJECT: FINANCIAL & COST ACCOUNTING Total Marks: 80 N.B.: 1)Allquestionsarecompulsory 2) All questions carry equal marks. Q1) ABC Ltd. Produces room coolers. The company is considering whether it should continue to manufacture air circulating fans itself or purchase them from outside. Its annual requirement is 25000 units. An outsider vendor is prepared to supply fans for Rs 285 each. In addition‚ ABC Ltd will have to incur costs of Rs 1.50 per unit for freight and Rs 10‚000
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Student ID: C7094607 Date of submission: 1st April 2011 Personal Effectiveness Page 1 Executive summary This report based on personal effectiveness describes the essential skills and competencies that are necessary to be successful strategic manager in relation to author‟s experience upon starting the masters program. The report clearly states the aim of the author‚ objectives to be undertaken to accomplish aim. The report uses SWOT analysis and SWAIN analysis tool to develop strategy
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Benchmark Assignment: Gospel Essentials “For it has been granted to you on behalf of Christ not only to believe in him‚ but also to suffer for him” (Philippians 1:29). As I was looking for bible verse to help write this paper this verse came up and it goes with the whole paper. This one verse just how much we need to sacrifice for Jesus because he did for us but this message says that we not only to believe in him but we also need to suffer for him. In this paper I will be talking about God and his
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HRMANAGEMENT CASE HUMAN RESOURCE MANAGEMENT Includes: human resource planning; recruitment‚ selection‚ and hiring of new employees; the orientation‚ training‚ and appraisal of current employees; and employee remuneration‚ motivation‚ and retention. You are to assume the newly-created position of Human Resource Director for a medium sized firm with over 600 employees. The firm has experienced significant expansion in the past few years; the human resource department and its functions
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Cost Benefit Analysis What is cost benefit analysis? Cost benefit analysis (COBA) is a technique for assessing the monetary social costs and benefits of a capital investment project over a given time period. The principles of cost-benefit analysis (CBA) are simple: 1. Appraisal of a project: It is an economic technique for project appraisal‚ widely used in business as well as government spending projects (for example should a business invest in a new information system) 2. Incorporates
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Essential oils have numerous health benefits and they are used for many purposes. These oils are beneficial for your overall health and well being as well as for household purposes. Bone Repair – To aid in faster bone recovery due to injury‚ apply cypress‚ fir and helichrysum essential oils. Improved Digestion – To support proper digestion and treat leaky gut‚ take peppermint‚ fennel and ginger essential oils. Anxiety Relief – Diffuse lavender essential oil all over your room or around your house
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