Cost variance and schedule variance, Cost Accounting

(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?

Posted Date: 3/6/2013 4:20:29 AM | Location : United States







Related Discussions:- Cost variance and schedule variance, Assignment Help, Ask Question on Cost variance and schedule variance, Get Answer, Expert's Help, Cost variance and schedule variance Discussions

Write discussion on Cost variance and schedule variance
Your posts are moderated
Related Questions
Master Designs Company has cash flows for operating activities of $350,000. Cash flows used for investments in property, plant, and equipment totaled $65,000, of which 70% of this

Expenses are usually recorded only while they are paid. The failure to record unpaid expenses in the accounts outcomes in an understatement of which expense and also an understatem

Place a prepared slide of Paratuecium under the microscope and focus it under low power (5x x 5x) and observe the following: i) It has a cigar-shaped or slipper-shaped body

what is the classification of cost & how it is done?

Do I use the contribution per unit and the total sales for the department in order to calculate the p/v ratio for a department

Cash is the other form of fund although in a narrow sense, this refers to a supply which can be drawn upon as per to the need. Here the term cash involves both cash and cash equiva

distinguish between bin card and store ledgre

The enhancing qualitative characteristic of understandability means that information should be understood by a those who are experts int eh interpretation of financial informat

what is traditional costing system

Outdoors R Us owns several membership-based campground resorts throughout the Southwest. The company sells campground sites to new members, usually during a get-acquainted visit an