Question

Just give a general response to this in a few paragraphs in regards to income statement and a cash flow statement can be used within managing a project.

In the few projects that I have been a part of, we typically track revenues and expenses with the amount of people that charge to our budget and control account. As an example, one person who worked exactly 40 hours in one week on our project would equal one head of labor charged for that week. For the most part, engineers work multiple projects at a time, so they are not always a full 40 hours a week dedicated. There could be 5 engineers working on our project, but if their work only adds up to 40 hours, then it would still equal one head of labor charged to the budget. Once a head is charged, it is known as an actual cost occurred, since it cannot be undone.

An income statement could be used on projects where there is work left to go and that remaining work must be planned out. An income statement will show how much money the project has made up to a certain point in time. The project management team can then use that info to determine how much budget is remaining and plan out the rest of the work that needs to be accomplished. If the first phase of a project takes in more income than planned, then the project manager will have more budget to work with for say phase 2. I am sure this happens all the time :)

One current report that is used in our projects is a supplier position statement. These are used when negotiating and contracting suppliers. They show suppliers bids versus how much money the project has allocated to putting suppliers on contract. They are a helpful tool during the contracting process when the information must be reported up through the executive level.

Answer 1

Page rather than moning of the project to another phase

* Lucome statement. It is the statement which give the amount of pofit/ miome generated during the peurd. Cash flow statement & It is the statement I reflect the cash flow within in og arusalios in diffeurs actielies' Lu current situation organisation charging expenses labour it read works at least 40 hours a weak on their hoject. But in case of engineers their contribution is upto 40 hours of Labour Qucome staliment and cash flow statement Que meaning ful tool for managing project because it'll helps to locate the flow of cash as on date on a vary moject and uncone statement reflect the ! tinestinent and expense Matiling duine tw moject completion as well as give the reflection of the further cool it may anione in future to cope up with the cult. here in the current scenario, The projev analysis hagged behind because and cut inaume is more than what it was mospected and are they still remain in the same phase

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Income Statement: It is the statement which gives the amount of profit / income generated during the period.

Cash Flow Statement: It is the statement which reflects cash flow within the organisation in different activities.

In current situation, Organisation charging expenses labour if head works for at least 40 hours a weak on the project, But in case of engineers their contribution is upto 40 hours of labour. Income statement and cash flow statement are meaning ful tool for managing project because, It ‘ll helps to locate the flow of cash as on date on a vary project and income statement reflect the investment and expenses matching during the project completion as well as give the reflection of the further cost it may involve in future to cope up with the same.

Here in the current situation, the project analysis lagged behind, because the cost incurred is more than the what it was prospected and they still remain in the same phase rather than moving to another phase of the project.

Income Statement: It is the statement which gives the amount of profit / income generated during the period.

Cash Flow Statement: It is the statement which reflects cash flow within the organisation in different activities.

In current situation, Organisation charging expenses labour if head works for at least 40 hours a weak on the project, But in case of engineers their contribution is upto 40 hours of labour. Income statement and cash flow statement are meaning ful tool for managing project because, It ‘ll helps to locate the flow of cash as on date on a vary project and income statement reflect the investment and expenses matching during the project completion as well as give the reflection of the further cost it may involve in future to cope up with the same.

Here in the current situation, the project analysis lagged behind, because the cost incurred is more than the what it was prospected and they still remain in the same phase rather than moving to another phase of the project.