Cost variance and schedule variance, Cost Accounting

Assignment Help:

(i) In terms of cashflow, which month will be the most costly for your project?

(ii) If the 3rd and 4th months are more expensive by 25% each because the outsourced labour took longer than expected, what is the effect on the final predicted project cost? What action do you think you could take in these circumstances? 

3(c) Assume you have completed three months of the project. The Budget at Completion (BAC) was $250,000 for this six-month project. Also assume the following:

Planned Value (PV) = $150,000

Earned Value (EV) = $140,000

Actual Cost (AC) = $125,000  

2343_Cost variance and schedule variance.png

Use this information to answer the following questions.

(i) What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?

(ii) Use the CPI to calculate the estimate at completion (EAC) for this project. Use the SPI to estimate how long it will take to finish this project. Sketch an earned value chart using the above information, including the EAC point. Use the chart below (Figure 7-5, p.289 in Schwalbe 5ed) as an example of what your Earned Value Chart should look like. Comment on your chart.

(iii) How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? Should you alert POSS senior management and ask for assistance?


Related Discussions:- Cost variance and schedule variance

the opportunity cost rate is 8 percent, Find the following values for a si...

Find the following values for a single cash flow: a. The future value of $500 invested at 8 percent for 1  year b. The future value of $500 invested at 8 percent for 5 years

Cost volume profit analysis, Cost Volume Profit Analysis 1. Post Publish...

Cost Volume Profit Analysis 1. Post Publishers has collected the following data for recent months: Month                 Issues published              Total cost May

Determine the cost, Sanderson Company has the following production data for...

Sanderson Company has the following production data for March: no beginning work in process, units started and completed 28,030, and ending work in process 3,890 units that are 100

Manufacturing a/c, format of manufacturing,tradind,p/l a/c

format of manufacturing,tradind,p/l a/c

What is subphylum uniramia, Tlie subphylum is called Uniramia because of t...

Tlie subphylum is called Uniramia because of the presence of unbranched appendages. These animals have non-jointed mandibles, uubranched appendages without any palps. They have

Determine cost per unit using marginal & absorption costing, Determine Cost...

Determine Cost per Unit By Using Marginal and Absorption Costing The given information was extracted from the book of a company for the year ended on date 31/12/2001. Outpu

Methods of costing, METHODS OF COSTING : 1. Job costing :  Job costing ...

METHODS OF COSTING : 1. Job costing :  Job costing is the essential costing technique appropriate to those industries somewhere the work consist of separate contracts, or batch

the meaning of the fixed production, Describe the meaning of the fixed pro...

Describe the meaning of the fixed production overhead variances calculated under the standard absorption costing system and talk about their usefulness to the management of X Ltd.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd