Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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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.
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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
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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
- How can the working-capital requirements significantly reduce a project's profitability or rate of return?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 operating profit margin?arrow_forward
- What is the relationship between return on capital investment and the risk associated with the anticipated sales of the product for which a new method will be used? Discuss.arrow_forwardThe formula for ROI is simply the gain from the project minus cost of the project divided by the cost of project. True or False?arrow_forwardHow would you define profit planning? What is the importance of profit planning?arrow_forward
- What is the relationship between profitability and efficiency, liquidity, investment, and efficiency and liquidity?arrow_forwardHow can we determine the Cash flows associated with producing products?arrow_forwardHow does the size of the initial investment affect the internal rate of return on the net present value models?arrow_forward
- Explain the difference between NOPAT and net income. Which is a better measure of the performance of a companys operations?arrow_forwardwhat does it mean if the NPV and IRR are both positive, should the company invest on the project or not?arrow_forwardWhat is the meaning of economic value added (EVA)? What does it measure? Why is it important?arrow_forward
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