Explain what a sunk cost is, what an opportunity cost is, and how each cost should be handled when doing project analysis. Give an example of each type of cost.

Q: Give me a model How Efficient is the Engineering Estimation Technique for Cost Estimation?

A: At whatever point we build up a product project, principle addresses that emerge to us is the amount…

Q: Discuss the importance of tracking actual and committed costs once a project has commenced.

A: The question is based on the concept of cost control and calculation of cost variance  project…

Q: Explain the implementation issues of the cost estimation methods

A: Cost estimation is the process of determining the probable cost of a product before starting the…

Q: Evaluate labour cost as a major project cost.

A: Project Cost: It is an estimation of total funds required to complete a project. The estimation is…

Q: Define initial direct costs.

A: Initial direct cost: A cost that is incurred during the process of initiating the agreement of lease…

Q: How Analysis Period Differs from Project Lives?

A: Analysis period is the time period which is considered by the evaluator while assessing different…

Q: Explain the following terms: practical capacity, cost of resources supplied, cost of resources used,…

A: Resource: It refers to a supply that can be used for producing the benefits or by making use of…

Q: What are the challenges of using the incremental cost allocation method when allocating common costs…

A: Cost Allocation Method:   The cost allocation method is the method by which the costs to be assigned…

Q: For the reader's advantage, provide a cost-benefit analysis of the project. How can the value of a…

A: An analysis is a systematic procedure used by businesses to determine which decisions to make and…

Q: Explain the usefulness of contribution margin and responsibility margin in making short-term…

A: Decision-making process: Decision making can be defined as the process of making choices through…

Q: The term stands for technical, economic, legal, operational and schedules feasibility. Discuss these…

A:

Q: Write cost pool, cost driver, activity cost, budgeting.   What are the assumption of CVP analysis?…

A: Answer:  Write cost pool, cost driver, activity cost, budgeting.   Cost Pool is the sum total of…

Q: How does the Analysis Period Differ from Project Lives?

A: In capital budgeting, the decisions are made to select the best alternative among various available…

Q: Describe issues in project cost estimating and how to deal with each.

A: in estimating the project cost there are a lot of difficulties faced while doing it. Some of them…

Q: Explain the relationship between the costs of flexible and committed resources, usage of resources,…

A: Cost accounting system: Cost accounting system of an organization consists of procedures and…

Q: 11. Explain what a sunk cost is, what an opportunity cost is, and how each cost should be handled…

A: A sunk cost is the cost that is already incurred and is not recoverable. This type of cost is not…

Q: Define single-project evaluation,

A: SOLUTION:- Single Project Evaluation is the systematic and objective study of the single ongoing or…

Q: Which type of cost center has a planning focus, and which type has an evaluation focus?

A: Cost Center: It is a department within an organization to which costs can be assigned.

Q: Define recruiting and what are its representative cost driver?

A: Recruiting:Recruiting is the process of hiring qualified employees to make them work for the…

Q: Define cost-allocation base?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: How are joint costs allocated? Explain and analyze using numerical example.

A: Joint Costs In business different costs are incurred in the production process, but in certain…

Q: Identify the output and input variables in both the bottom-up and top-down strategies to cost…

A: Bottom ups of the cost estimate are the most accurate cost estimation process wherein every minute…

Q: Describe the process of Evaluating a Single Project?

A: A single project can be evaluated using quantitative, qualitative or a combination of both. Project…

Q: How do strategic factors affect the proper use of relevant cost analysis?

A: Relevant cost analysis is the process of identifying the incremental cost and benefits of deciding…

Q: Cost Management is extremely important for running successful projects. With reference to this:…

A: Project Cost: It refers to the total funds that are required to complete a project.

Q: Explain Calculating Total P System Costs?

A: Periodic inventory system also known as P system is a method of stock taking, where stock taking is…

Q: Discuss the techniques that can be applied to obtain relevant and accurate cost estimates.

A: The question is based on the concept of cost estimation, which is one the most important parameter…

Q: Explain how the Analysis Period Equals Project Lives?

A: Answer: For the present worth analysis, the definition of analysis period equivalent to project…

Q: Explain the difference between resource spending and resource usage.

A: Resources: Resources are the economic elements that enable people to carry out activities. A…

Q: Outline the rules for identifying the optimal transfer price.

A: Transfer pricing:- Transfer pricing is considered as the value that is attached to those goods and…

Q: Identify and discuss the factors that affect the focus and practice of cost management.

A: The practice of managing and organizing the expenses associated with running a firm is known as cost…

Q: Describe the concepts of contribution margin, relevant range, and relevant costs

A: Solution:- Analysis the concepts of contribution margin, relevant range, and relevant costs as…

Q: Define research and development and what are its representative cost driver?

A: Cost drivers: It refers to the object or things which affect the costs of a business. For example,…

Q: Analyse the significance of gearing and insolvency for project cost   2. Evaluate labour cost as a…

A: SOLUTION-1 GEARING- IT REFERS TO A RELATIONSHIP OR RATIO OF COMPANY DEBT AND EQUITY . GEARING SHOW…

Q: Search about how technique is efficient Engineered estimate of cost to estimate cost.

A: technique is efficient Engineered estimate of cost to estimate cost.

Q: Define the term opportunity cost, and give an example of one.

A: Opportunity cost: It is the benefit which is foregone by choosing next best alternative. In mutually…

Q: Explain the strategic role of cost estimation.

A: Cost estimation: Cost estimation is a technique that assist the management for taking strategic…

Q: Explain Evaluat ing a Single Project?

A: Capital budgeting is referred as the process of decision making which is used by companies to…

Q: Explain the implementation problems in cost estimation.

A: Cost estimation: It is the development of a defined relationship between cost object and cost…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.