What of the following kinds of contracts is the actual, final cost of the project unknown...
What of the following kinds of contracts is the actual, final cost of the project unknown until after the project is completed (circle all that apply):
1. cost plus fixed fee
2. fixed price
3. cost plus incentive fee
4. none of these
Homework Answers
Answer: Option C - Cost plus incentive fee
Explanation: In the type of contract named Cost plus incentive fee contract, the total cost of a project is composed of a fixed cost and an incentive fee based on the performance. Hence the total cost is not known until the project is completed.
Add Answer to:
What of the following kinds of contracts is the actual, final
cost of the project unknown...
A Client has decided to use a Cost Plus Incentive Fee contract price arrangement to motivate...
A Client has decided to use a Cost Plus Incentive Fee contract price arrangement to motivate the Contractor to be more efficient and productive in executing the project. The Contractor’s Fee will be calculated based on a Sliding Fee approach by considering a $110,000,000 target price and a 4% Base (R). Calculate Contractor’s Fee and Total Payment to the Contractor for two following scenarios: Scenario 1) Actual Cost of Project = $102,000,000 Scenario 2) Actual Cost of Project = $124,000,000
1. Turco Products uses a job order cost system. The following debits (credits) appeared in Work-in-Process...
1. Turco Products uses a job order cost system. The following debits (credits) appeared in Work-in-Process Inventory for September: Description Amount September 1 Balance $ 27,300 For the month Direct materials 162,900 For the month Direct labor 101,600 For the month Factory overhead 77,216 For the month To finished goods ( 318,200 ) Turco applies overhead to production at a predetermined rate of 76 percent based on direct labor cost. Job 9-27, the only job still in process at the...
Marine Components produces parts for airplanes and ships. The parts are produced to specification by their...
Marine Components produces parts for airplanes and ships. The parts are produced to specification by their customers, who pay either a fixed price (the price does not depend directly on the cost of the job) or price equal to recorded cost plus 1 and client 2). The work done for client 1 will all be done under fixed-price contracts while the work done for client 2 will all be done under cost-plus contracts. The controller fixed fee (cost plus). For...
Marine Components produces parts for airplanes and ships. The parts are produced to specification by their...
Marine Components produces parts for airplanes and ships. The parts are produced to specification by their customers, who pay either a fixed price (the price does not depend directly on the cost of the job) or price equal to recorded cost plus a fixed fee (cost plus). For the upcoming year (year 2). Marine expects only two clients (client 1 and client 2). The work done for client 1 will all be done under fixed-price contracts while the work done...
QUESTION 16 What is the NPV of the new machine project? The project would require an...
QUESTION 16 What is the NPV of the new machine project? The project would require an initial investment in equipment of $67,000 and would last for either 3 years or in 4 years (the date when the project ends will not be known until it happens and that will be when the equipment stops working in either 3 years from today or 4 years from today). Annual operating cash flows of $21,000 per year are expected each year until the...
Marine Components produces parts for airplanes and ships. The parts are produced to specification by their...
Marine Components produces parts for airplanes and ships. The parts are produced to specification by their customers, who pay either a fixed price (the price does not depend directly on the cost of the job) or price equal to recorded cost plus a fixed fee (cost plus). For the upcoming year (year 2), Marine expects only two clients (client 1 and client 2). The work done for client 1 will all be done under fixed-price contracts while the work done...
#1. A project in its 26th week has an actual cost of $270,000. It was scheduled...
#1. A project in its 26th week has an actual cost of $270,000. It was scheduled to have spent $261,000. For the work performed to date, the budgeted value is $272,000. What are the cost and schedule variances for the project? What are the SPI and CPI? What is your assessment of the project from a cost and schedule perspective? #2. A project has just completed the 87th item in its plan. It was scheduled to have spent $168,000 at...
(2) Consider a project that will be completed in four years. Total Project Cost=P140M Fixed Project...
(2) Consider a project that will be completed in four years. Total Project Cost=P140M Fixed Project Revenue=P210M Year Projects Costs Incurred 40M 2 25M 3 45M 30M Total 140M Given the above information and assuming that things will happen as projected, what would be the amount of revenues to be recognized for each of the four years for the following conditions: (a) using percentage-of-completion method (b) using completed contract basis (c) using straight cost plus contract with a mark-up of...
7 In the work breakdown structure for a construction project: A. The different levels of detail...
7 In the work breakdown structure for a construction project: A. The different levels of detail represents the logical hierarchical decomposition of the B. The smallest element in the WBS is the activity C. The project elements at various levels of the WBS relate to the contractor's project organizational structure, which defines the different responsibility levels D. All the above Negotiated cost-plus type of contracts is best used when: A. The risk is high B. No variations are expected C....
what is the normal cost of this project? what is the cost of the project after...
what is the normal cost of this project?
what is the cost of the project after 2 days shortening?
what is the crashing cost per day for avtivity G?
Given the following data and network, find answer the questions 18-20 if you're asked to finish this project 2 days earlier than its normal duration. Indirect cost (overhead) is $200 per day. 9.12 E 1.8 اليا 12.19 10.13 B 7 H 7 1.8 13, 20 0.1 1.7 8.15 20,25 15, 20...
Marine Components produces parts for airplanes and ships. The parts are produced to specification by their customers, who pay either a fixed price (the price does not depend directly on the cost of the job) or price equal to recorded cost plus 1 and client 2). The work done for client 1 will all be done under fixed-price contracts while the work done for client 2 will all be done under cost-plus contracts. The controller fixed fee (cost plus). For...
Marine Components produces parts for airplanes and ships. The parts are produced to specification by their customers, who pay either a fixed price (the price does not depend directly on the cost of the job) or price equal to recorded cost plus a fixed fee (cost plus). For the upcoming year (year 2). Marine expects only two clients (client 1 and client 2). The work done for client 1 will all be done under fixed-price contracts while the work done...
QUESTION 16 What is the NPV of the new machine project? The project would require an initial investment in equipment of $67,000 and would last for either 3 years or in 4 years (the date when the project ends will not be known until it happens and that will be when the equipment stops working in either 3 years from today or 4 years from today). Annual operating cash flows of $21,000 per year are expected each year until the...
Marine Components produces parts for airplanes and ships. The parts are produced to specification by their customers, who pay either a fixed price (the price does not depend directly on the cost of the job) or price equal to recorded cost plus a fixed fee (cost plus). For the upcoming year (year 2), Marine expects only two clients (client 1 and client 2). The work done for client 1 will all be done under fixed-price contracts while the work done...
(2) Consider a project that will be completed in four years. Total Project Cost=P140M Fixed Project Revenue=P210M Year Projects Costs Incurred 40M 2 25M 3 45M 30M Total 140M Given the above information and assuming that things will happen as projected, what would be the amount of revenues to be recognized for each of the four years for the following conditions: (a) using percentage-of-completion method (b) using completed contract basis (c) using straight cost plus contract with a mark-up of...
7 In the work breakdown structure for a construction project: A. The different levels of detail represents the logical hierarchical decomposition of the B. The smallest element in the WBS is the activity C. The project elements at various levels of the WBS relate to the contractor's project organizational structure, which defines the different responsibility levels D. All the above Negotiated cost-plus type of contracts is best used when: A. The risk is high B. No variations are expected C....
what is the normal cost of this project?
what is the cost of the project after 2 days shortening?
what is the crashing cost per day for avtivity G?
Given the following data and network, find answer the questions 18-20 if you're asked to finish this project 2 days earlier than its normal duration. Indirect cost (overhead) is $200 per day. 9.12 E 1.8 اليا 12.19 10.13 B 7 H 7 1.8 13, 20 0.1 1.7 8.15 20,25 15, 20...
Most questions answered within 3 hours.
-
A company has entered into a business agreement with a business
partner for managed human resources...
asked 2 minutes ago -
You have been asked to develop a new line of organic skincare
products. Spend time with...
asked 48 minutes ago -
Summerdahl Resort's common stock is currently trading at $37 a
share. The stock is expected to...
asked 1 hour ago -
To an economist, the field of industrial organization answers
which of the following questions?
asked 1 hour ago -
How could meeting industry expectations, propel managers into
challenging and possible conflict of interest situations? How...
asked 1 hour ago -
You have been married to your spouse for 10 years. You have two
small children (ages...
asked 3 hours ago -
Spiderman makes a leap from one building to
another. He starts on one building that is...
asked 3 hours ago -
A
symbol is something that stands for something else. What are the
symbols in education?what are...
asked 4 hours ago -
The charge to the left in the figure above has a
magnitude of 2.90 nC, and...
asked 5 hours ago -
Verify the MIRR is 9.29% given cash flows in years 1 and 2 of
$1,000 each,...
asked 6 hours ago -
Calculate the pH of a 5.7 M solution of aniline (C6H5NH2; Kb =
3.8 x 10^-10)
asked 8 hours ago -
LSL R3, R3, R12
Memory
Address
Orig.
Data
Updated
Data
Register
Orig.
Data
Updated
Data
0x84F0...
asked 8 hours ago