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 7, Problem 14P
The ACWP at the end of the second week for the project in Problem 12 is $37,900. Determine the CPI for the project.
A project consists of three tasks. Task A is scheduled to begin at the start of Week 1 and finish at the end of Week 3. Task B is scheduled to begin at the start of Week 1 and finish at the end of Week 2. Task C is scheduled to begin at the start of Week 2 and end at the end of Week 3. The budgeted cost for Task A is $22,000, for Task B is $17,000, and for Task C is $15,000. At the end of the second week, Task A is 65% complete, Task B is 95% complete, and Task C is 60% complete. What is the SPI for the project at the end of the second week?
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A project consists of three tasks. The budgeted cost for the three tasks are as follows:
task A is $4k, task B is $1k, and task C is $350. At the end of the first week the
following are the percentages completed: task A 50%, task B 100%, and Task C is 15%.
At the end of the first week, the actual costs of work performed was attained from
and indicates
accounting reports and amounted to $2,250. The calculated CPI is
that the project is
budget.
O 0.73, under budget
O 1.35, under budget
O 1.35, over budget
0.73, over budget
Consider the construction of 9-week foundation activity with the operation cost broken down into the following elements:
- Labor 1600 $ paid 400 $ weekly.
- Equipments 3500 $ paid 500 $ weekly after 5 weeks
- Materials 1200 $ paid 200 $ weekly after 5 weeks
- Subcontractors 1500 $ paid 300 $ weekly after 3 weeks
Determine the expenses (cash out) of this activity.
Assume any missing data
. The following seven activities constitute an overall bar chart portrayal of a six-month project.
Month 1
0.5
Month 2
Month 3
Activity
Develop Project
Charter
Cost
Month 4
Month 5
Month 6
$1,500
Develop Work
Plan
$8,000
0.5
0.5
Develop
Specifications
Design
Framework
$5,000
0.5
$15,000
Build the
$11,500
0.5
Framework
Test the
Framework
$2,000
0.5
Implement
Framework
$20,000
Note: 0.5 means half month
Three months after the start of the project, activities develop project charter, develop work
plan, develop specifications, 70% of design and 20% of building were completed for a cost
of $28,500. Evaluate the status of the project. For this project, using earned value concepts
determine the percent schedule variance, the percent cost varjance, cost performance index,
schedule performance index, the percentage completion, and estimate at completion. State if
the project is over or under budget and if it is ahead or behind schedule. (show detail
calculation)
Chapter 7 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 7 - What are the key steps in the monitoring and...Ch. 7 - What does it indicate when a superintendent has to...Ch. 7 - What is the best way to control labor costs? What...Ch. 7 - Why are equipment costs for company-owned...Ch. 7 - What is an internai change order and how is it...Ch. 7 - Why is it important to have a realistic budget for...Ch. 7 - What are some of the problems with using the CPI?Ch. 7 - Prob. 8DQCh. 7 - During the design phase, what are the steps for...Ch. 7 - Determine the estimated cost of the work performed...
Ch. 7 - Determine the estimated cost of the work performed...Ch. 7 - A project consists of three tasks. Task A is...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - The ACWP at the end of the second week for the...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - Determine the total estimated cost at completion...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - Prob. 18P
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