Complete the following cost schedule

complete the following cost schedule Howell Corporation. Assuming each day’s work costs $100, what is the Cost Variance, the Schedule Variance, the CPI and SPI? Activity Predecessor Duration (days) Start None None A Start 2 B A 2 C A 4 If you think that there will be several activities in a project, comparison of actual results with the schedule baseline will give an overall indication of project schedule performance. Formula VII. 2. BUAD 644: Comprehension Check 7 100 pts 1. Subcontractors and consultants (if used). This is the same answer you get if you eliminate all the Q terms, but this will not always be the case. The quantity schedule shows 12,000 units were received during the month from Department 1; 7,000 units were transferred to finished goods; and 5,000 units in process at the end of June were 50% complete as to materials cost and 25% complete as to conversion cost. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? · Cost variance = EV-AC=$150,000 - $180,000 = -$30,000 The process of establishing budgets, standards, and a monitoring system by which the investment cost of the project can be measured and managed. Setup hours for the period were 1,400. ) . Travel expenses, food expenses, etc. Variance Analysis reviews the differences (or variance) between the planned and actual performance. 2 Activity time-cost relationship A simple representation of the possible relationship between the duration of an activity and its direct costs appears in Fig. Create Gantt Chart Schedule. The prime cost was $407,000. Thus comparing actual cost booked with approved budget gives the cost variance. Compressing the Project Schedule. ): Fixed cost is found when Q = 0. 2 - Estimating Cost To Complete • 4. Labor is hired at a wage of $150 per day1. Project Schedule Planning In order to develop our schedule, we first need to define the activities, sequence them in the right order, estimate the resources needed, and estimate the time it will take to complete the tasks. Below is a list of the main EVM equations. When marginal cost is greater than average total cost, average total cost is rising; the cost of the last unit produced raises the average. 94 = $766,000. of Output Marginal Complete the following cost schedule: (Ch. Price ----- Quantity Supplied More than $9 ----- ? Answer to: Complete the following cost schedules. 1. A cost-reimbursable contract with a percentage fee pays the contractor for costs plus a percentage of the costs, such as 5% of total allowable costs. In a logical order, these documents refer to the following subjects: Cost Estimating is an approximation of the cost of all resources needed to complete activities. Using 3D model create a section box - BX b. Cost or pricing data may be required if all of the following apply: Absolute value of the increases and decreases exceed $500K; No exception to requiring cost or pricing data applies; and 1. Transferred out 10,400 units. You are 13 weeks into the project, and have constructed 7 miles of road at a cost of $58,000 per mile. As there could be a scenario where the project team has accomplished the planned work but with more cost incurred? Or the team is behind schedule though the cost is less spent on the project. C) Resources required during an Iteration. The project is on schedule if SPI equals to 1. Cost and Schedule Forecasting. Complete the schedule of the Chapter 14: Schedule of cost of goods manufactured and income statement; inventory analysis The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. This can be of the project schedule, cost, other technical performances or other data analysis. (a) Complete the following cost schedule by computing average fixed cost and average variable cost. After 2 months, you realize that the project is 30% completed at a cost of A Cost estimate is a quantified expectation of how many resources are required to complete a project or parts of a project. During the executing phase, if a project has negative values for the cost variance and the schedule variance, which of the following would most accurately represent the project's status? The following are three short-run average total cost schedules for the only three possible plant sizes, 1, 2, and 3. Cost-plus-incentive-fee contracts are covered in Subpart 16. Calculate the schedule performance index and cost performance index of the project on the review date. Following is the complete table - Output (Q) Total Cost (TC) Total Fixed Cost (TFC) Total Va view the full answer Answer to: (a) Complete the following cost schedule by computing average fixed cost and average variable cost. com Output Total Cost Average Fixed Cost Average Variable Cost 0 $800 ----- ----- 1 1000 2 1250 3 1550 4 2000 5 2500 (b) Complete the following cost schedule by computing Average Total Cost and Marginal Cost: Instructions: Enter COMPLETE THE FOLLOWING COST AND REVENUE SCHEDULE Quantity Price TR TC MC Profit $80 $0 $50 $0 $-50 1 $80 $80 $70 $20 $10 2 $80 $160 $110 $40 $50 3 $80 $240 $170 $60 $70 4 $80 $320 $250 $80 $70 5 $80 $400 $350 $100 $50 Complete the chart Fixed and Variable Costs of Yo-Yos. An optimum minimum cost project schedule implies lowest possible cost and the associated time for the software project management. If the project continues to perform with these cost and schedule variances, the actual cost of the project will be $40,800. (20 pts ) a. The contractor is (and hence the project cost) increases 16 times. Two additional documents contain information students will need, but do not require completion by students. If the budget at completion (BAC) of the project is $800,000, the estimate to complete is ($800,000 − $80,000) ÷ 0. 4. On each child (sub-task) row, you can use the % Complete column to manually fill in the percentage of work that has been finished for that task. The control schedule is the last process of the time management knowledge area as stated in the PMP training course. If the estimates are frequently different from the actual costs, the choice of estimating method is reviewed. a. Note. The net result was that there was some additional cost in the project. This is the same answer you get if you eliminate all the Q terms, but this will not always be the case. (All India 2011) 47. Quantity 0 1 Cost slope = crash cost – normal cost / normal duration – crash duration As shown in Figures 8. Figure 2 shows a simplified DMAIC (Define, Measure, Analyze, Improve, Control) project schedule using a Gantt chart. Estimate to Complete Example 2. 00 1-10 See full list on globalknowledge. 300 . In determining of cost of goods sold net purchases are taken into account. Complete the following cost schedules for a perfectly competitive firm: Instructions: Enter your responses rounded to two decimal places. Project management software is typically used to create these analyses – Gantt charts and PERT Charts are common formats. It shows the cumulative planned value, earned value and actual cost (the blue bars), the schedule and cost variance (the grey bars) and the development of the cost performance index and schedule performance index over time. The following drawings are most commonly prepared and enclosed with the project report: The To Complete Performance Index (TCPI) is the third forecasting tool mentioned in the PMBOK Guide. Transferred out 9,000 units. B. 000. AC (Actual Using the RPs obtained, calculate the earned value (EV), schedule variance (SV), Cost Performance Index (CPI), and Schedule Performance Index (SPI) of the project. For every dollar spent we are getting 60 cents’ worth of performance. The Activity layout depicted in the following examples will display the selected performance percent completed as well as the Earned Value Cost resulting from that selection. important for cost estimating because it often establishes the quantity and unit of measure for the costs of labor and contractor’s equipment. Cost Performance Index (CPI) Formula: This the schedule status expressed as a ratio of earned value to actual cost. There are three types of resources − work, material, and cost. Suppose you are managing a software development project. The Activity A is 100% complete. D. AC = $180,000 Using this information, write a short report that answers the following questions. A cost-plus-incentive-fee contract is a cost-reimbursement contract that provides for an initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs. 2. Alternative Care Education. Also assume the following: PV = $160,000. 5 and you are over-budget 4. It also takes into account all of the tasks, therefore some tasks might over and some might be under budget, but the CV gives you the entire picture. The cost of goods manufactured amount is transferred to the finished goods inventory account during the period and is used in calculating cost of goods sold on the income statement. After 2 months, you realize that the project is 30% completed at a cost of Study PMP Mock 5,6,7 and 12 flashcards from Pat Herbert's class online, or in Brainscape's iPhone or Android app. Earned Value (EV): The actual completion of the task. You will do this for materials, labor and overhead (or for conversion costs which is the both direct labor and overhead). Export or enter the Work Breakdown Structure into a Gantt chart for further scheduling and project tracking. It involves deciding which tasks would be taken up when. ) 3,000 4,500 6,000; Garments The best way to determine this is to remember high is good, low is bad ie. 66 250 516. Compressing or crashing the project schedule refers to the acceleration of the project activities in order to complete the project sooner. schedule. Cost Estimation and Budgeting. This chapter will examine methods that you can use to identify, analyze, and resolve contract cost and schedule variances Schedule and cost variances need to be monitored throughout the project to keep the project in control. Labor. The completed-contract method of accounting is used by manufacturers and contractors. Estimate the schedule and cost variances. 00 Labour Cost Schedule Calculate, complete and fillin the following shaded area: 1) Daily Cost for each employee, each day of the week 4) Total em 2) Cost per day, for each day of the week 5) Total hou 3) Total cost of all days of the week 6) Total hou Sunday Hours Daily cost Monday Hours Daily cost Tuesday Hours Chef Off 0 $0. )Marginal Cost(Rs. 94 = $766,000. Project risk analysis uses data obtained from variance analysis of scope, schedule, and costs. if less than one project is behind schedule and if above 1 it is ahead of schedule. C 90 20. 3, the least direct cost required to complete an activity is called the normal cost (minimum cost), and the corresponding duration is called the normal duration. Activity C has 4 deliverables and 3 have been completed. Tasks 12, 20, 10, 28, and 32 are late and are all contributing to the schedule variance, but only tasks 20 and 28 are on the critical path. Tell your boss. Which of the following schedule compression techniques requires completing work packages in parallel to shorten schedule duration? Fast Tracking Which of the following schedule compression techniques is often the highest risk and with the added drawback of increasing the cost? The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimated sum to complete the project. Compute the SV and CV for the project. How to Compute Cost Performance Index (CPI) and Schedule Performance Index (SPI) in Projects; To gauge project performance by using Earned Value Analysis formulae, use the following: Estimate at Completion (EAC): Computes project performance by looking at the total cost of the project when it is completed based on the current rate of progress. 4. Marginal cost can be defined as the increase in cost which is associated with one-unit increase in the production of goods or services. Marginal costs also come down until 44 units are produced after which they start rising. 303(b)(4), 14. Schedule Network Analysis – This is a graphic representation of the project's activities, the time it takes to complete them, and the sequence in which they must be done. However, it should be noted that risks themselves might never result in a cost or schedule increase until the risk manifests itself. The process includes determining the cost estimates from building, unit prices and lump-sum estimates, job sites and general overhead, bidding procedures, and labor If the filer chooses to complete Schedule M-1 instead of completing Parts II and III of Schedule M-3, line 1 of the applicable Schedule M-1 must equal line 11 of Part I of Schedule M-3. It shows how the remaining project time should be used by giving you the percentage of efficiency that your resources should work on in order to keep the project on track. A partially completed schedule of the company's total and per unit costs over a relevant range of tn 1 Inite nrnH1 and iR thø mf thA 1. Complete the following table. Your credits must be reduced or eliminated entirely. Within this range, the following partially completed manufacturing cost schedule has been prepared: Components produced 200,000 250,000 320,000 Total Costs: Total variable costs 64,000 (d) (j) Total fixed costs 80,000 (e) (k) Total costs 144,000 (f) (l) Cost per unit Actual Cost (AC) is the total cost incurred for the actual work completed to date. Obviously i havexx,xxxx in there because you didnt give the numbers. The total budgeted cost of the project is 20,000,000 USD. 3. For the following test marketing project at week 6 Determine how many resources are required to complete the project according to the project baseline. The forecast cost at completion is $78,000 which is $13,000 over budget. The following figure contains some explanations on the example diagram shown above. It shows cumulative costs expended over time for the duration of the project, and may be used to assist in the calculation of the project's cash flow, and cost to complete. 11. In the case of an 1120 mixed group, Parts II and III of Schedule M-3 (Form 1120) must be completed for all members of the mixed group whether Schedule M-3 Schedule management interfaces directly with scope, cost, and quality optimization and team member roles and activities must be defined, coordinated, and continually monitored. Total Manufacturing Costs xx,xxx. Less Ending work in process inventory. Regardless of the dollar value of our schedule variance, these are significant, because they put the project end date in jeopardy. Complete the schedule of the Costs to complete beginning work in process: you will take the Equivalent units calculated for completing beginning work in process x the cost per equivalent unit. all constant. For example, if you have completed 7 out of 10 fence post holes, you are 70% complete and the EV is 70% of the task budget. 1 $ 250,000 Plus: Cost of foods manufactured (from schedule of work in process) 1. • A project was estimated to cost $200,000 with a timeline of 10 months. B) Schedule. Instructions: Enter your responses rounded to the nearest whole number. 1. D. Figure 2: Costs versus Time S-curve % Complete. Thats it. Crash A may cost $20,000 and save two weeks. The project is expected to be completed in 8 months at a cost of $10000 per month. Since Schedule Performance Index (SPI) is more than one, the project is ahead of schedule. See Schedule A to Form 8971—Consistent basis reporting under Column (e)—Cost or Other Basis, later, for more information on consistent basis reporting and the amount you will report on Form 8949. Project scheduling Project-task scheduling is an important project planning activity. The ETC is prepared by re-estimating the resources required to complete the remaining authorized work using the cost experience to date and then applying a number of other factors; such as current direct and overhead rates, Schedule Risk Assessment (SRA), Monte Carlo simulations, root Jane's Juice Bar has the following cost schedules: a. Assuming the price of this product is $10, at what output rate is: (a) Total revenue maximized? Answer to Complete the following cost schedules: Quantity01234567Total . It is the goal of every project manager to look for efficiencies in all of these areas as a project progresses. Calculate the cost of crashing per unit time. Cost planning starts with the proposal for the project. Weighted average (carrying unit prices to five decimal places) 2. Click here👆to get an answer to your question ️ Complete the following table:Output(Units)Total Cost(Rs. The following graph shows the AFC, AVC, and ATC curves: c. Effort is an estimate of the hours it takes to complete the task. A) Activity Cost Estimates. Complete the cost of goods manufactured schedule for Cepeda Manufacturing Company. The activity definition process is a further breakdown of the work package elements of the WBS. Due to a shipment delay, the schedule was slightly delayed. In total, 2,200 machine hours were used to produce the product. Complete the following schedule for the three volumes shown. (Numbers are rounded. See full list on pmstudycircle. 80 to 90 Schedule variance (SV) is most useful in assessing the direction all work in the project is taking after _______ of the project has been completed. The fourth section of 6 guidelines is very important, inasmuch as it requires human attention to cost and schedule variances, documenting cause, impact, and correction action, and determining a new estimate at complete (EAC), if warranted. FIFO b. You are charged with preparing a status report for top management. According to this view, project management is the application of everything a project manager does to meet these parameters. KATRINA'S TRINKETS Schedule of Cost of Goods Sold For the Year Ending December 31, 20X6 Beginning finished goods inventory, Jan. The prime cost was $407,000. Thats it. To be eligible for an AFSP – Record of Completion, a return preparer must complete and pass the AFTR course and obtain their other CE by December 31 prior to the start of the tax season. Individuals use Form 8949 to report the following. Graph all three curves. Therefore, these organizations implement procedures that track actual cost booked on work packages or on various project activities. Beginning work in process $ 0 2. com A cost schedule is a table showing the total costs of production at different levels of output and from which marginal costs and average costs can be calculated and cost curves drawn. A project to develop technology training seminars is 5 days behind schedule at day 65. Activity C has 4 deliverables and 3 have been completed. Determine whether the project should continue to the next phase. In project management, a formal schedule will often be created as an initial step in carrying out a specific project, such as the construction of a building, development of a product, or launch of a program. • This is now the new schedule. 201-2, or 15. Second, the cost ratio method would estimate the work complete as the cost-to-date divided by the cost estimate or $40,000/$ 90,000 = 0. The critical path method (CPM), or critical path analysis (CPA), is an algorithm for scheduling a set of project activities. Identifying And Analyzing Cost And Schedule Variances • 4. Risk mitigation (abatement) on the other hand would need effort expended and result in some cost and possible schedule impact. Cost of goods sold: Beginning finished goods, Jan. (All India 2011C) 48. The cost of crashing for most activities can be calculated relatively easily. manufactures components for computer games within a relevant range of 200,000 to 320,000 disks per year. Cost of Goods Manufactured. The codes for business or professional activities, one of which you will enter in box B, are found on the last two pages of the instructions for Schedule C. Output Total Cost Average Fixed Cost Average Variable Cost 0 $600 ----- ----- 1 800 2 1,050 3 1,400 4 1,800 5 2,300 (b) Complete the following cost schedule by computing (a) Total cost at 0 level of output represents total fixed cost and it remains same at all level of output. Required:1. Costs per use on the other hand are costs that do not vary with task. Defining Activities. 649 (477), #1) Output Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost 0 $600 0 0 0 0 1 800 200 600 200 800 2 1,050 250 300 225 525 3 1,400 350 200 267 467 4 1,800 400 150 300 450 5 2,300 500 120 340 460 b. When a worker is on a job for a longer or shorter period of time than the schedule shows, the employer must record the number of hours the worker actually worked, on an exception basis. b. Cost budgeting aggregating the estimated costs of resources, work packages and activities to establish a cost baseline. However, Activity B is only 75% complete. The following diagram shows the changes to the curve of the cost and value indicators that are required to achieve the budget at completion. Cost Control – factors that create cost fluctuation and variance can be influenced and controlled using various cost management Manufacturing has the following production and cost data for July. Actual cost = $ 125,000 Earned value = $ 90,000 In this context, all the following statements are true EXCEPT: 1. Add Beginning work in process inventory. Learn faster with spaced repetition. receiving reports d. A. Control costs is a project management activity where actual cost of work performed is measured. The cost section of a proposal may consist of elements such as the following: 1. materials requisitions Use the following information to complete the below schedule of cost of goods manufactured: Purchases of raw materials: $120,000. Cost Control – factors that create cost fluctuation and variance can be influenced and controlled using various cost management 10. Cost per use is a set fee used up to complete a task. It might include the estimated hours and hourly rate for each person or classification. This job aid provides an overview of the following EVM charts and report: Cumulative Variance Trend chart Cost and To-Complete Performance Indexes (CPI/TCPI) chart Cost/Schedule Variance Trends chart Estimates at Completion (EAC) chart Six-Period Summary report WRITE [1] Based on the following three individual demand schedules for a particular good, and assuming these three people are the only ones in the society, determine (a) the market demand schedule on the assumption that the good is a private good, and (b) the collective demand schedule on the assumption that the good is a public good. D) Planned scope to be delivered in a Sprint. Production 1. Risk Control. 5. 2. The average cost can average around $75—100. • Each time a significant change in the schedule is needed, the project manager saves the schedule as a baseline then applies the new changes. New matching, multiple choices exam questions from domain, process, business environment and agile which align with the new 2021 exam contain outline Schedule Baseline and Work Breakdown Structure: WBS which consists of Work Packages and WBS Dictionary, which defines these work packages, as well as Schedule Baseline, which is the reference point for managing project progress, are included here. ETC = 800,000 USD. Schedule variance is the difference between the part of the budget that has been done so far (EV) versus the part that was planned to be completed by now (PV). Make realistic assumptions about any missing data. However, other units such as man-days can also be used if the currency amounts are not applicable or irrelevant. In total, 2,200 machine hours were used to produce the product. The cost of products sold to distributors of carpet manufacturer Shaw Floors. Output Total Cost Average Fixed Cost Average Variable Cost 0 $800 ----- ----- 1 1000 2 1250 3 1550 4 2000 5 2500 (b) Complete the following cost schedule by computing Average Total Cost and Marginal Cost: Instructions: Enter Robo-Tech Inc. Risk management reviews Answer: B 21. Calculate Total Cost and Average Variable Cost for each given level of output (Delhi 2006) The following table gives the total cost schedule of a firm. To Complete Performance Index (TCPI): The Cost Performance Index (CPI), that is, the efficiency level that will allow the project to finish on budget. It includes the original 6. Cost resources − Financial cost associated with a task. The planned value of these activities are ₹ 1,80,000 and ₹ 80,000 respectively. While preparing such a schedule we can assume that the cost-determining factors such as method(s) of production, the prices of productive factors, etc. 4. List of detailed drawings It should contain all drawings required for the project to be executed. It is commonly used in conjunction with the program evaluation and review technique (PERT). The total derived from this schedule is then used to calculate the cost of goods sold for the reporting period. . 20 units of medical care. In fact, it tracks whether we are behind, ahead or on schedule with the project. Unlike t he percentage-of-completion method, which attempts to recognize revenues and gross profit in the applicable periods of construction, and not soley in the period when the construction has been completed, under the completed-contract method of accounting, revenue, expenses, and gross profit is deferred Cost/schedule impact analysis - A cost/schedule impact analysis determines the effects of a particular change on a project’s cost or schedule. Enter a Recurring Task Average total cost (sometimes referred to simply as average cost) is total cost divided by the quantity of output. Qualifications for deducting some expenses are complicated, and some expenses may need to be amortized or depreciated over time, rather than being deducted as expenses The Cost Variance is the equivalent to the Schedule Variance, but it tells you whether the project is over or under budget, instead of schedule. Accounting Q&A Library From the following facts, complete a depreciation schedule by using the straight-line method: (Input all amounts as positive values. 75 (CPI = EV / AC). Answer−B. A) Activity Cost Estimates. Whether the project will be completed on schedule will depend upon whether Activity 5 can make up for lost time. You will do this for materials, labor and overhead (or for conversion costs which is the both direct labor and overhead). 1. Instructions Complete the cost of goods manufactured schedule for Cepeda Manufacturing Company. Find the TVC, TFC, AVC, AFC, SAC and SMC schedules of the firm for the corresponding values of output. 1, 8. In our example the schedule variance was -$1,000 and the cost variance was $500. What is the relationship between the marginal-cost curve and the average-total-cost curve? Between the marginal-cost curve and the average-variablecost curve? Explain. Started 3,000 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31. The actual cost of Activity A is ₹ 2,00,000 and that of Activity B is ₹ 1,00,000. It is expressed as the difference between the budgeted cost of work scheduled (planned value) and the budgeted cost of work performed (earned value). The shortest possible duration required for completing the An incomplete cost of goods manufactured schedule is presented below. See full list on project-management. Submit a professional status report to Robin Lane that addresses the following questions: How is the project progressing in terms of cost and schedule? Application with a Schedule. SPI is 0. 00 Raw materials available for use: $148,000. 50 units of medical care. During the other process groups which come before Control Schedule, we have determined the project activities, defined the relationship of activities, estimated the duration of activities and finally reached a project schedule. Assign values to Effort hours, Number of resources, Start date, End date, and Duration to determine the schedule for the task. The Total Fixed Cost of a firm is 12. Cost variance is - $ 35,000 and you are over-budget 3. The project is expected to be completed in 8 months at a cost of $10000 per month. The project is on schedule but costs exceed budget. Estimate to Complete Formula: ETC = Cost of Rental Equipments + Cost of Workmanship + General Expenses = 500,000 + 250,000 + 50,000 = 800,000 USD. Materials. Setup hours for the period were 1,400. Since so much of the project has been completed the project is expected to come in over budget. Who Must File. Fixed cost is found when Q = 0. And where i typed "less" before a title, that obviously means subtract that number WRITE [1] Based on the following three individual demand schedules for a particular good, and assuming these three people are the only ones in the society, determine (a) the market demand schedule on the assumption that the good is a private good, and (b) the collective demand schedule on the assumption that the good is a public good. Re-estimate the variances if the actual cost had been $750,000. Number of resources is an estimate that the project manager puts in the task to help come up with the best possible schedule. The estimated cost to complete the remainder of the activities for a project is called the estimate to complete (ETC), while the estimate of the final cost at completion is called the estimate at completion (EAC). And where i typed "less" before a title, that obviously means subtract that number Consider the following table of activities: After 8 days of work, activity A has been completed on time. Cost estimate and cost of production (These will be presented in Chapter 4) 6. payee, you must complete Form 8885 before completing Schedule A, line 1. As AFTR courses are offered by CE providers, return preparers are subject to the schedule of courses offered by these providers. 00 Off 0 $0. Complete the table below. A partially completed schedule of the company's total and per unit costs over a relevant range of tn 1 Inite nrnH1 and iR thø mf thA 1. Less Ending work in process inventory. 5 Description of the construction works schedule of execution 5. However, this technique doesn’t tell about the health of the project. 4. 4, Incentive Contracts. For instance, if the actual percent complete is 30% and the budget is $10,000 then EV is $3,000. This job aid provides an overview of the following EVM charts and report: Cumulative Variance Trend chart Cost and To-Complete Performance Indexes (CPI/TCPI) chart Cost/Schedule Variance Trends chart Estimates at Completion (EAC) chart Six-Period Summary report A company produced 12,000 units of a product. Quantity schedule is the first section of a cost of production report. EV = $150,000. • The sale or exchange of a capital asset not reported on another form or schedule. Project Factors Schedule requirements; or the cost of a linear schedule versus the cost to accelerate the schedule, or overlap the project phases. Evaluate the costs just cited, and determine whether the associated dollar amounts would be found on the firm’s balance sheet, income statement, or schedule of cost-of-goods-manufactured. To control costs on the project the PM has to monitor expenditures, prepare cost forecasts, compare realized costs against the cost baseline and manage changes to it using Change control process. However, this was made up by shipping the first batch of materials for the project by air. Solution: A review of budget estimates for the cost of work scheduled is compared to the actual costs. A project manager performs Earned Value Analysis and finds the following values: EV: 100,000; PV: 125,000; AC: 100,000 A. Obtain customer acceptance of project deliverables. Your credits may be limited even if you do not owe AMT, so be sure to complete Side 1 and Side 2 of Schedule P (540). a)compute total revenue, total cost Since the actual cost to date is a known value, EAC uncertainty is a function of the Estimate to Complete. info 45. You have more than two costs of response . 1 Contract documents The contract is defined by the contract documents, which are developed from the tender documents. It is one of the most common PMP formulas. C. Now assume there are 1500 identical firms in this competitive industry; that is, there are 1500 firms, each of which has the same cost data as shown here. Your approved budget for the project is $930,000, and you have forecast that the project will take 35 weeks to complete. Meet with the team to look at options for crashing or fast tracking the critical path. B) Schedule. 1. Assuming each day’s work costs $100, what is the Cost Variance, the Schedule Variance, the CPI and SPI? Activity Predecessor Duration (days) Start None None A Start 2 B A 2 C A 4 It can by found by determining the cost of remaining (unfinished) work components (work packages and activities) at the bottom of WBS and then aggregating them Upwards. If the project schedule is behind the planned values, appropriate schedule compression techniques must be applied to complete the remaining activities of the The Cutting Department of Hong Manufacturing has the following production and cost data for July. Since the total cost of producing 40 haircuts is $320, the average total cost for producing each of 40 haircuts is $320/40, or $8 per haircut. CPI is 0. metrics which are calculated in the following three budget and schedule completion. 1005-2, each line item or subline item shall include in the schedule (described at 12. Materials 45,000 Labor 16,200 MOH 18,900 Materials are entered at the beginning of the process. 44 or 44%. 2. (a) Except as provided in 4. Cost Estimating is an approximation of the cost of all resources needed to complete activities. Costs to complete beginning work in process: you will take the Equivalent units calculated for completing beginning work in process x the cost per equivalent unit. Rolling Wave Planning is the process of decomposing each work package within the WBS into the corresponding schedule activities required to produce the work package deliverables From the following facts, complete a depreciation schedule using thee straight - line cost of Highlander- $30,000 residual value- $6,000 estimated life- 8 years A is the correct answer. Under a 5-year straight-line schedule, owners claim 1/5 of the depreciable cost ($200) as depreciation expense each year. On Schedule D, you will have to fill out a section for short term and long term gains and losses. If the average cost falls due to an increase in the output, the marginal cost is less than the average cost. Analogous estimating techniques Bottom-up estimating techniques Parametric modeling techniques Computerized modeling techniques The project schedule is used to determine all of the following except which one? Cost estimates Activity start dates Float times Activity end dates Your project sponsor has requested a cost estimate for the project But no matter what the range in costs, some vaccines, such as the “core vaccines,” and for rabies, are necessary. B. Attach it to Form 540 only if any one of the following apply: You owe AMT. When figuring the amount of insurance premiums you can deduct on Sched-ule A, don’t include any of the following. , how you are performing in terms of schedule and cost. The cost of goods manufactured schedule is used to calculate the cost of producing products for a period of time. Complete the schedule above to calculate the pool rates. Scheduling Resources and Costs Using Resource Schedule to Develop a Project Cost Baseline • Baseline: The original plan plus all the changes. com View Comprehension Check 7 Answer Key. Cost of goods available for sale 715 khanacademy. If prices continue to increase, would you favor adopting the FIFO or the LIFO method? Explain. These documents include the following: schedule of budgeted costs, bill of materials, production schedule, two purchase orders, materials requisition, job cost record, and six raw materials records. AFC declines as output increases due to the spreading effect. Crashing - A schedule compression technique used to speed up project work by increasing the rate at which critical path activities are completed by adding more resources — usually more personnel or The Costs versus Time S-curve is appropriate for projects that contain labor and non-labor (e. A 140 0. If the budget at completion (BAC) of the project is $800,000, the estimate to complete is ($800,000 − $80,000) ÷ 0. Actual Cost (AC): The actual cost of the task so far. ” Just in case the definition above doesn’t give you a complete picture, let me give you a simple example. 2, and 8. Schedule variance is - $ 10,000 and you are behind schedule 2. 66 4 2,000 450 200 300 500 5 2,500 500 160 340 500 ( b ) Use the cost data to plot the ATC and MC curves on List the following documents in the order in which they are used when recording direct materials costs in job order cost accounting, with the first document on top. As such, the total indirect costs decrease as the project duration decreases. Consider the following scenario. Crash B may cost $24,000 and save two weeks. This will overlay a grey bar on each task in the Gantt chart to visualize the progress. Cost of Goods Manufactured. Complete the following table. What is a Cost of Goods Manufactured Schedule? The cost of goods manufactured schedule is used to calculate the cost of all items produced during a reporting period. g. Started 3,000 units that are 60% complete as to conversion costs Enter Fixed Cost. D 50 30. The estimated final cost to complete the project is $275,000. The Sponsor wants to know the budgetary cost estimate for finishing the project work within the original schedule at current CPI. Shortening the duration on an activity will Under these market conditions, the marginal resource cost is the price of the input, say wages (w), since the additional cost of employing one more unit of the input is just the price of the input. Complete the following table. The time required to complete a In month 9 the following project information is available: actual cost is $2,000, earned value is $2,100, and planned cost is $2,400. a. A partially completed schedule of the company's total and per unit costs over a relevant range of 66,000 to 106,000 units produced and sold each year is given below. It had a planned cost of $735,000 for this point in time, but the actual cost is only $550,000. Obviously i havexx,xxxx in there because you didnt give the numbers. Similarly, the cost variance is the difference between the EV and the actual cost (AC). Relationship between Average Cost and Marginal Cost. This is an example of schedule and cost integration working effectively. Production. Work resources − People and equipment to complete the tasks. )Average Fixed Total Manufacturing Costs xx,xxx. 204-2, or in a comparable section of the procurement instrument), at a minimum, the following information as separate, distinct data elements: The employer may keep a record showing the exact schedule of daily and weekly hours and merely indicate that the worker did follow the schedule. How to Fill Out and Read Schedule C . • Any amounts you included on Form 8885, line 4 or on Form 14095 (The Health Coverage Tax Credit (HCTC) Reimbursement Request Form). The following list shows various business expenses that may be miscellaneous ("other expenses" on line 27a in Schedule C), with suggestions about where they might be categorized. Schedule Variance (SV) and Cost Variance (CV) are two essential parameters in Earned Value Management. This excellent tool helps project managers in calculating the future cost performance of the project. materials ledger cards c. Decompose the Work Packages to activities as appropriate. (Round all unit costs to the nearest cent and all total costs to the nearest whole dolar. The cost of crashing per week will therefore be $10,000 per week for Crash A and $12,000 per week The university project managers consider several factors in selecting a construction project delivery system including the following. Required: Prepare Cost of production report. Risk Mitigation. 000 Goods available for sale $ 1,250,000 Less: Finished foods inventory. Conversion costs The cost of products sold to customers of a Target store. (Delhi 2011 c) 46. Earned Value Analysis Schedule and Cost Variance Schedule Variance. When all direct expenses are added to the purchase price of goods and purchases returns are deducted from purchases, the result is net purchases. It shows the cumulative planned value, earned value and actual cost (the blue bars), the schedule and cost variance (the grey bars) and the development of the cost performance index and schedule performance index over time. Calculate the industry supply schedule (column 4). A. To practice your pre-exam and review each question with detail explanation, let try with our FREE Exam tool. 9 and you are behind schedule ˘ The descriptions should include information such as, boundaries, milestones, risks, owner, costs, etc. 21, p. Such cost estimates are often expressed in currency units. Click View Tab → Data group → Tables → Cost. Pool Rates: Pool Rates is the rate of each activity used in the manufacturing process and it is used in computing for the applied cost According to the PMBOK Guide, Estimate at Completion is “The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete. To reduce the thickness of lines visible in plan views - TL d. The Cost Management focuses on the cost performance of the project. Complete Schedule P (540) to see if AMT applies to you. CEPEDA MANUFACTURING COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 31, 2008 Work in process (1/1) $216,000 Direct materials Raw materials inventory (1/1) $_________ Add: Raw materials purchases165,000 See full list on brighthubpm. Planned Value is sometimes called Budgeted Cost of Work Scheduled (BCWS). Complete the table to find the fixed cost, variable Following the PMBoK 6th edition, project variations are estimated through the following theories. The fixed cost is spread over more and of $5 from the first bottle ($6 price minus $1 cost), $3 from the second bottle ($6 price minus $3 cost), and $1 from the third bottle ($6 price minus $5 price), for a total producer surplus of $9. 1 Contract documents The contract is defined by the contract documents, which are developed from the tender documents. Project managers use this analysis to plan for risks based on the actual cost, schedule and progress of the work. Complete the following cost schedule: (p. Add Beginning work in process inventory. When total costs are = 34Q3 – 24Q + 9, fixed costs are 34 X 0 – 24 X 0 + 9 = 9. An incomplete cost of goods manufactured schedule is presented below. The Schedule Management focuses on the schedule performance of the project. Assume that your company has undertaken a project to be completed in 20 months. Other time-based schedules are called "accelerated schedules" because they accelerate depreciation, compared to a straight-line schedule. Equipment and facilities rental. 2-32 (25–30 min. LIFO c. They help you analyze the project’s progress, i. Individuals. To Complete Schedule Performance Indicator (TSPI) Calculation. B. The construction schedule is an important component of the larger document and second only to the construction contract agreement. Assume you are managing a construction project. Calculate average variable cost, average total cost, and marginal cost for each quantity. Identify all the tasks needed to complete the A schedule may also involve the completion of a project with which the public has no interaction public prior to its completion. Cost budgeting aggregating the estimated costs of resources, work packages and activities to establish a cost baseline. Consider the following table of activities: After 8 days of work, activity A has been completed on time. 2. Cost is a monetary measure of the expenditure for capital and labor required to complete contract performance Cost Analysis: is the review and evaluation of the separate elements of cost including profit and/or fee in the Applicant/Offeror’s proposal to determine if the projected price is fair and . It is also the document that helps the contractor schedule the work. This component allows the contracting client to know how and when the project will be completed and offers them leverage when schedule problems arise. B 120 10. This means that the project is behind schedule, but it is being performed efficiently and is cost-positive. Acronym Name Equations Variances CV Cost Variance = BCWP – ACWP = EV – AC = (CV /BCWP) *100 CV% Cost Variance % = (EV – AC) / EV …Continue Reading→ schedule. (b) Complete the following cost Econ 2200Homework #6 – Production and CostsUse the following information to answers the questions below:Capital rents for $50 per unit per day. Variance Analysis. In order to schedule the project activities, a software project manager needs to do the following: 1. Jack Meredith and Samuel Mantel 2 discussed project management in terms of producing project outcomes within the three objectives of cost, schedule, and specifications. Q 0 1 … read more When measuring percent complete in the monitoring phase of the project, it is common to limit the amount earned to_____ percent complete until the work package is 100% complete. Cost of Goods Sold Format: The schedule of cost of goods sold will be as follows: Required: Complete the Jaspers' federal tax return for 2019. average-variable-cost curve constitutes the short-run supply curve for the firm. If an worker charging $75/hr was performing the majority of this work, they are about 13 hours behind schedule (although they will finish under budget). Use the total cost (TC) schedule that is presented in the table below to calculate average total cost, average variable cost, average fixed cost, and marginal cost when output (Q) is equal to 5. After the project is finished, the estimates of risk can be reviewed and compared to the events that actually took place. To deliver projects that successfully meet time and cost requirements, an increasing number of project professionals are using earned value management (EVM) as a method for controlling and forecasting project performance. e. Part 4A Today's date is July 8, 2015, the milestone date for the completion of the Prototype. In a logical order, these documents refer to the following subjects: The following two questions refer to the production possibilities schedule below: Medical. To calculate the estimate to complete (ETC), assuming the cost variance on known activities is typical of future cost, the formula is ETC = (BAC − EV) ÷ CPI. When total costs are = 34Q3 – 24Q + 9, fixed costs are 34 X 0 – 24 X 0 + 9 = 9. ) Cost of Honda Accord Hybrid $ 40,000 Residual value $ 10,000 Estimated life 6 years End of year Cost of Honda Accord Depreciation expense for year Accumulated depreciation at end of year Book value at end of year 1 2 3 4 1. The EAC column provides an estimated cost at the completion of the project. Rolling Wave Planning is a cost and schedule planning technique used in the Activity Definition process C. Calculate average variable cost, average total cost, and marginal cost for each quantity. For more information, see line 61 instructions, on page 11. By having the time-phased budget and actual cost, we cannot accurately predict the project’s cost at completion. Fixed Cost is associated with a task that is not tied to any resources or amount of work. For each method, prepare a schedule that shows the total cost of materials transferred to Work in Process and the cost of the ending inventory. The client asks you to update them with the current status and progress of the project. Use Form 1040, Schedule 1 Schedule 3 , Schedule A, Schedule B, Form 2441, and Form 8880, as needed. Interpretation: Since Cost Performance Index (CPI) is less than one, this means the project is over budget. EV= $10,000 x 30% EV= $ 3,000. CV = EV – AC = 2,100 – 2,000 = +100 The graph describes the planned cost against the actual cost incurred. Cost of goods manufactured (below) 645. 649 (477), The average variable cost does not always increase in proportion to an increase in the output. f. ” Illustrate graphically. 1) Use the shortcut keys in Revit discussed in class to complete the following tasks and list them below a. The project is on schedule and on budget. To complete Schedule C, first fill in the information about your business at the top of the form. 3. To create similar doors and windows in a floor plan layout - CS c. important for cost estimating because it often establishes the quantity and unit of measure for the costs of labor and contractor’s equipment. Step 1. A cost estimation is prepared in order to submit a bid for a construction project and is used to establish a budget for the project once it is won. b. A company produced 12,000 units of a product. The PV is 30% of the task budget. Tell senior management that the project’s critical path does not allow the project to be finished earlier. The schedule performance index (SPI) is the ratio of the earned value and the planned value. In the following example, we have assigned a fixed cost of $500 to Task 7. Graph all three curves. material supply / hire / subcontract) tasks. 8. The project is now in the fourth month, the work is on schedule means , percentage of work completed = (4/12)*100 Cost Variance = Earn Value - Actual Cost Earn Value = total cost * percentage of work actually completed = $240,000 * (4/12)=$80,000 CV = $80,000 - $120,000 = -$40,000 Write your totals from Form 8949 on Schedule D. Cost of goods sold is reported as an expense on the income statements and is the only time product costs are expensed. org A cost-reimbursable contract with a fixed fee provides the contractor with a fee, or profit amount, that is determined at the beginning of the contract and does not change. In both Section 1 and 2, the first lines on Schedule D regard your values from Form 8949. C) Resources required during an Iteration. A partially completed schedule of the company's total and per unit costs over a relevant range of 66,000 to 106,000 units produced and sold each year is given below. [1 + 1 + 1 marks] (c) Unfortunately, two trades resigned after Task 5 was completed and this caused the remaining tasks to exceed its original cost and schedule by 25%, 50%, 50% 1 Answer to 18. docx from BUAD 644 at University of Redlands. It looks at the relationships between the Earned Value (EV) and the Planned Value (PV). The average fixed cost, average variable cost, and average total cost per cup of yogurt are given in the following table. 9. C. When determining whether or not to request cost or pricing data, sum the related increases and decreases in contract value. The process of gathering, accumulating, analyzing, reporting, and managing the costs on an on-going basis. It looks at the relationships between the Earned Value (EV) and the Actual Cost (AC). Third, the "incremental milestones" method would be applied by examining each pipe section and estimating a percentage complete and then aggregating to determine the total percentage complete. Now that we know the basics of the three-point estimate and beta distribution, we can apply it to a scheduling example. job cost sheets b. Assume the following cost data are for a purely competitive producer: In the table below, complete the short-run supply schedule for the firm (columns 1 and 2 Cost of goods sold are the costs of all goods SOLD during the period and includes the cost of goods manufactured plus the beginning finished goods inventory minus the ending finished goods inventory. Box A - Did you complete federal Schedule C, D, E, or F and claim or receive any of the following (Note: If your business gross receipts are less than $1,000,000 from all trades or businesses, you do not have to report alternative minimum tax (AMT). Schedule attributes. This paper critically examines EVM, defining its purpose, describing the function of its 32 criteria, and explaining its reporting metrics--schedule performance index (SPI The following Primavera P6 training tutorial demonstrates each of the 5 Performance Percent Complete techniques for calculating Earned Value Cost. E 0 40. What is the opportunity cost of the first 10 units of education? $200,000. Hint− Page 193, PMBOK 5 (6) Which of the following is a direct project cost? Which of the following is the BEST thing to do when asked to complete a project two days earlier than planned? A. The project cost is the sum of the direct and indirect costs. A publisher faces the following demand schedule for the next novel one of its popular authors: price quantity demanded $100 0 90 100,000 80 200,000 70 300,000 60 400,000 50 500,000 40 600,000 30 700,000 20 800,000 10 900,000 0 1,000,000 The author is paid $2 million to wite the book, and the marginal cost of publishing the book is a constant $10 per book. To calculate the estimate to complete (ETC), assuming the cost variance on known activities is typical of future cost, the formula is ETC = (BAC − EV) ÷ CPI. 17. Here, you'll be transferring the total gain/loss for each asset you determined when filling out Form 8949. Suppose you are managing a software development project. The project is behind schedule but on budget. Enter the cost under the Fixed Cost column for the task of interest. ) 110 . To Complete Schedule Performance Indicator (TSPI) is a KPI that is a project efficiency rating. Now we can return to our earlier question regarding whether it was worth paying someone $20 per hour (assuming the wage was our only variable cost). The project manager is conscious of the need to reduce future incurred cost and increase the value to be earned going forward. The project manager (usually, their project management software) calculates these variables daily, weekly, or on some regular schedule to determine the health of the project, and to aid in making The following figure contains some explanations on the example diagram shown above. Adjust the schedule and cost baselines based on past performance. Free 2,500+ PMP questions for practice. Schedule Variance (SV) is a measure of schedule performance of the project. Thus producer surplus rises by $5 (which is the size of area B) when the price of a bottle of water rises from $4 to $6. However, this has come at a cost of going over budget. Schedule Variance (SV) Schedule Variance shows the difference between where we planned to be and where we are actually in the schedule. Jane’s Juice Bar has the following cost schedules [in the table below, showing for the quantities, the variable and total costs]: a. B. CEPEDA MANUFACTURING COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 31, 2012 Work in process (1/1) $210,000 Direct materials Raw materials inventory (1/1) ?????? Add: Raw materials purchases 158,000 Total raw materials ( a ) Complete the following cost schedule: Rate of Total Marginal Average Average Variable AvergageTotal Output Cost Cost Fixed Cost Cost Cost 0 $ 800 0 0 0 0 1 1,000 200 800 200 1,000 2 1,250 250 400 225 625 3 1,550 300 266. This 1 Answer to Healthy Harry’s Juice Bar has the following cost schedules: Q (VATS) VARIABLE COST TOTAL COST 0 $ 0 $ 30 1 10 40 2 25 55 3 45 75 4 70 100 5 100 130 6 135 165 a. )Average Variable Cost(Rs. b. Quantity schedule section. We can find EAC value by 3 different approaches using EV, SPI and CPI values. The following line items are typically found in the schedule: Schedule A Summary of Indirect Expense Rates Schedules B, C, D Indirect Cost Pools Schedule E Claimed Allocation Bases Schedule F Cost of Money Schedule G Booked and Claimed Direct Costs Schedule H Direct Costs by Contract at Claimed Rates Schedule H-1 Government Participation by Pool Schedule I Cumulative Allowable Cost Worksheet Here is the cost he incurs to produce each bottle of water: Cost of first bottle: $1 Cost of second bottle: $4 Cost of third bottle: $7 Cost of fourth bottle: $9 From this information, complete the following table by deriving Lorenzo's supply schedule. ) Income statement and schedule of cost of goods manufactured. Clarity of the project scope; is a longer planning phase needed. 1, 2009 $ 70. Units of No. Answer − D Even schedule risks may end up presenting a cost risk in the end. Another element is required, which is the value of accomplishments or Earned Value. Project Management Plans: This section contains all management plans of all project aspects. The Cost Performance Index has a value of 0. What is the on cost and schedule management. 0 Chapter Introduction. Relation of Average Variable Cost and Average Total Cost to Marginal Cost: Before we explain, the relation of average variable cost (AVC) and average total cost (ATC) to marginal cost (MC), it seems necessary that the various types of costs and their relationship should be shown in the form of a table. Use the cost data to plot the ATC and MC curves. Income Statement for the Year Ended December 31, 2009 (in millions) Revenues $950. D) Planned scope to be delivered in a Sprint. A cost of production report consists of the following three sections/parts: Quantity schedule section; Cost per equivalent unit section; Cost reconciliation section; Let’s briefly describe the purpose of each section. Given below is its marginal cost schedule. (A) You are the project manager on a project to complete 15 miles of road. It is also given that the average fixed cost at 4 units of output is Rs. 3 - Resolving Potential Cost Overruns • App 4A - Earned Value Management System Guidelines . TCPI is a relatively a new term. Find the long-run average cost schedule and show the result in let's say that we run ABC watch Factory and we want to understand the economics of our business so what we have in this table is some data that we've already been able to estimate a met or measure based on how our business is running and then we're going to be able to figure out some other things based on this data so this first column is fixed costs our monthly fixed costs so these are the A firm's fixed costs for 0 units of output and its average total cost of producing different output levels are summarized in the table below. complete the following cost schedule


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