Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 11, Problem 1DQ
How can the estimator increase the profit the company makes on a project?
Expert Solution & Answer
To determine
Explain the manner the estimator can increase the profit the company makes on project.
Explanation of Solution
The estimator might enhance the profit on a job by recognizing times when a higher profit and overhead gain might be charged or by dropping construction costs in the course of getting better price for materials and subcontractors’ work.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
What is a true indicator of the project's profitability?
How can the working-capital requirements significantly reduce a project's profitability or rate of return?
(A) compute the profitability index for each project.
(B) based on the profitability index, which project should the company select?
Chapter 11 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 11 - How can the estimator increase the profit the...Ch. 11 - Prob. 2DQCh. 11 - What are the six ways to allocate overhead to...Ch. 11 - Why is it important for profit center managers to...Ch. 11 - Prob. 5DQCh. 11 - What are the three ways that job-based profit...Ch. 11 - Prob. 7DQCh. 11 - In Figure 2-8, why was equipment repairs and...Ch. 11 - Your company completed the site work for the South...Ch. 11 - Prob. 10P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Why does a company evaluate both the money allocated to a project and the time allocated to the project?arrow_forwardIt is good to compute first the additional benefits that a project can give and the additional cost incurred by implementing a project. This concept talks about a. Law of Supply and Demand b. Marginal Cost Benefit Analysis c. Time Value of Money d. Financial Ratiosarrow_forwardwhat is return on investment capital and profitability analysis?arrow_forward
- How can we use the internal rate of return to evaluate whether we should pursue a specific project? Should we pursue a project when the cost of capital is higher than the internal rate of return?arrow_forwardWhat is an internal rate of return and what advantages and disadvantages are accrued by using it to evaluate projects?arrow_forwardhow would I find the difference between net operating income if the project is eliminated?arrow_forward
- Define the term Profitability Index? How can we consider the profitability index of a project?arrow_forwardHow can the money released from a project be reinvested to yield a rate of return equal to that received from the project?arrow_forwardHow are effective improvement of return on investment in Zara companyarrow_forward
- What are the components of the weighted average cost of capital that a company should use for project valuation?arrow_forwardHow can engineers make capital-expenditure choices that are based on forecasting success?arrow_forwardDescribe the concept of rate of return based on the return on invested capital in terms of a project?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Internal Rate of Return (IRR); Author: The Finance Storyteller;https://www.youtube.com/watch?v=aS8XHZ6NM3U;License: Standard Youtube License