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

CONCEPT AND OBJECTIVES, what are the concept and objectives of cost account...

what are the concept and objectives of cost accounting?

Definition of budget, DEFINITION OF BUDGET As per the Institute of Cos...

DEFINITION OF BUDGET As per the Institute of Cost & Management (ICMA), London, a BUDGET is 'a quantitative statement and / or financial, prepared and approved prior to a defin

Analyse the data and prepare a report, The data set for the assignment is a...

The data set for the assignment is about breast cancer.  Some of these data have been changed for the purposes of this assignment so the results from the analysis of this file may

Break-even analysis, Break-Even Analysis Break-even point is the volum...

Break-Even Analysis Break-even point is the volume of sales at that there is no loss or. Break-even charts graphically show the relationship of cost to profits and volume and

Exploration costs, are exploration cost treated as an asset or expense or b...

are exploration cost treated as an asset or expense or both?

Job costing, XYZ Company is a family-owned bicycle manufacturing company lo...

XYZ Company is a family-owned bicycle manufacturing company located in Stow, Ohio. Until recently,it had maintained slow but steady growth in producing and marketing its only prod

Schedule of work in process, Schedule of Work in Process The given sche...

Schedule of Work in Process The given schedule presents the calculations which pertain to work in the process. Pay attention to the details, noting that (1) direct materials

Costs and revenues over a range of activity levels, 1. Single product or si...

1. Single product or single mix of products 2. Variable cost, fixed cost and selling price are constant 3. The level of production will equal the level of sales Example:

Calculate the consumption ratios for each product, The activity driver for ...

The activity driver for the shipping activity is the number of orders shipped. Product A uses 20 orders and Product B uses 60 orders. Calculate the consumption ratios for each prod

Week 2 Assignment, Please complete the following 7 exercises below in eithe...

Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculation

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