What is a cost-centre, What is a 'cost-centre'? What are

What is a cost-centre

Assignment Help Project Management

Reference no: EM133486017

Assignment:

Class Activities Book

Monitor Costing Systems on Complex Building and Construction Projects

Questions to discuss:

Question 1: What are the various costs incurred on a construction project?

Question 2: List the seven (7) major components of costs in a construction project?

Question 3: How would you define 'cost estimate' for a construction project?

Question 4: List the Six (6) types of project expenses based on direct cost and indirect cost?

Question 5: What is a 'cost-centre'? What are the benefits of using 'cost-centre' on a construction project?

Question 6: List the ten (10) main 'cost-centres' commonly defined on a construction project.

Question 7: What is a 'definitive cost estimate'?

Question 8: What is 'Work Break Down Structure (WBS)'?

Question 9: What is risk assessment for a construction project?

Question 10: What are the three (3) steps to estimate the risk?

Question 11: What details are included in project expenditures?

Question 12: List the six (6) critical issues that could impact the financial situation of a construction project?

Question 13: Mention three (3) basic steps that must be followed in preparation of expenditure schedule for a construction project.

Question 14: Identify the important factors that play a vital role in creating the critical financial situation in a construction project?

Question 15: What are 'Interim Payment Claims'?

Question 16: What are rise and fall calculations in a project?

Question 17: What is S Curve?

Question 18: What is Projected Cash Flow?

Question 19: What is Sensitivity Analysis?

Question 20: What is overdraft Facility?

Question 21: What is difference between budgeted cost and actual cost?

Question 22: Define 'cost variation'.

Question 23: List the expenditures that must be included in the 'final cost report' of a construction project.

Class Activities:

Activity 1:

In this activity, you need to participate in a group-discussion with your instructor and co-students of the class. The topics to be discussed are:

What types of costs are incurred on a construction project? What types of cost are not included in the project budget?
What is cost estimate and what are the key components of cost estimate?
What is cost-centre?
Why project schedule and estimated cost is important for any construction project.

Approximately 5 to 7 minutes to be spent on discussion on each topic. You may note down key points during the discussion.

Activity 2:

This activity will be performed at the premises of College.

Your trainer will provide you the following:

A contract agreement of a complex building construction project.
Bill of Quantities of the project
Project Schedule
Financial perimeters of the project
Risk Assessment of the project

With the given information, you need to perform the following task under the supervision of your instructor:

Split the activities and prepare the work breakdown structure
Define the cost centres for the project
Provide codes to cost centres
Allocate budget to cost centre
Analyse and evaluate the financial risk associated with the project
Incorporate the cost centres into planned project cost heads

The tools required data needed for the activity will be provided by the RTO.

Activity 3:

In this activity, the trainer will provide you the financial documents of a small building construction project. The scheduled duration of that project is 12 months. You need to prepare the cash flow S-curve for the project. The date given as-

Cash Inflow documents such as interim payment details, bank payments etc.
Cash outflow Documents such as contractor payments, material payments, overheads etc.

Activity 4:

In this activity, student need to prepare the final cost report of a completed project. Trainer will provide you following data:

Labour payments including over time
Material payments summary
Cost of sub-contractors or any other agencies
Details of all cost direct or indirect
Total payment certified and outstanding
Any other related document

Having access to the above documents, student need to analyse and interpret the documents. Student may ask and take help from trainer for preparation of final cost report of the project.

Reference no: EM133486017

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