Financial Accounting Case Study

University of Phoenix Material: Elements of a Contract Scenario Read the Elements of a Contract Scenario.

592 Week 1 DQ 1 WBS Construction PROJ 592 Week 1 DQ 2 Project Cost Estimates and Assumptions PROJ 592 Week 2 DQ 1 Cost Components PROJ 592 Week 2 DQ 2 Estimating Processes PROJ 592 Week 3 DQ 1 Project Schedules PROJ 592 Week 3 DQ 2 Sensitivity Analysis PROJ 592 Week 4 DQ 1 Resource Allocation and Leveling PROJ 592 Week 4 DQ 2 Advanced Schedule Techniques PROJ 592 Week 5 DQ 1 Earned Value Calculation PROJ 592 Week 5 DQ 2 Project Monitoring and Control & EV PROJ 592 Week 6 DQ 1 Forecasting Project Completion Cost PROJ 592 Week 6 DQ 2 Project Control PROJ 592

Mutual promises: If B makes a promise in return for A’s promise, this will confer a benefit on A (because A will have an enforceable legal right to have the promise

v. This is applicable to our case because the negotiation and contract signing payments can be considered arrangement considerations because the payments are fixed and therefore, should be allocated over the three

The strategy provisos included premium add up to be paid was expanded on my achievement of dominant part in the event that I neglect to change the approach. As I neglected to pull out from the agreement on the fulfillment of larger part, I was committed to pay to the additional premium for not changing the arrangement.

ii) When dealing with customers, Eden Sounds prefer to use a “Standard form contract”. Explain what a ‘standard form contract’ is, and list the advantages to both parties in using them.

cognizant of the fact that the choices he makes can affect the price a buyer pays

g. On December 31, 2012, the company completed the work on a contract for an out-of-province company for $7,900 payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction.

The second requirement that needs to be fullled by the parties in the contract is the

6. Written report to be given to the customer that details your bid plan (this includes a copy of your

3. If the contract doesn’t have applicable and similar cost in it, the contractor should propose a cost and submit to the stakeholders to get a approval, and carry out.

Cost accounting is a type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance (Cost Accounting, n.d.).

* Level of completion of the transaction at the balance sheet date can be assessed;

5. The project is assumed to end in year 4. Do you think that this is realistic? Can you estimate the value of the project’s operating cash flows beyond year 4? State any assumptions you made.

When engaging in a construction contract, time is of the essence and running over time projections can cause literally millions of dollars in additional non-contract costs. Therefore, construction contracts that can provide incentives to complete the project on time or early are beneficial because they effectively penalized contractors who fail to deliver on-time performance. With a CPIF contract, the