Define Development costs.

Q: Evaluate labour cost as a major project cost.

A: Project Cost: It is an estimation of total funds required to complete a project. The estimation is…

Q: Differentiate between a project’s physical life and its economic life.

A: At the point when an organization purchases an asset it mulls over numerous things like the expense…

Q: How Analysis Period Differs from Project Lives?

A: Analysis period is the time period which is considered by the evaluator while assessing different…

Q: Classify the following cost drivers as structural, executional, or operational.

A: Classification of cost derives: Classification 0f the given cost drivers as structural, executional,…

Q: Define value engineering. How is it used to control costs?

A: Value engineering also called value analysis refers to the process of increasing quality of the…

Q: Define Cost effectiveness.

A: Cost effectiveness refers to the examination of both cost and health outcomes of different course of…

Q: The MARR used for a project’s acceptance or rejection is set relative to what cost?

A: MARR is a discount return which is the lowest rate of return that must be accepted in the project.

Q: Define the term contribution margin.

A: Contribution margin is defined as the term which determines the profitability of the individual…

Q: Explain what a sunk cost is, what an opportunity cost is, and how each cost should be handled when…

A: The question is based on the concept of cost analysis.

Q: What are the technique of project appraisal

A: Step 1: Techniques of the project appraisal are: Profitability index Payback period NPV IRR

Q: Distinguish between a cost center, a profit center, and an investment center

A: Definition: Responsibility center: A department or unit of a corporation where the management…

Q: Differentiate between divisible and indivisible projects

A: Capital rationing is the process of limiting the projects that the company. It will reduces the…

Q: Describe issues in project cost estimating and how to deal with each.

A: in estimating the project cost there are a lot of difficulties faced while doing it. Some of them…

Q: , determine whether the project should be undertaken.

A: Net Present Value=Present Value of Inflow-Present Value of Outflow Present Value of…

Q: Explain the relationship between the costs of flexible and committed resources, usage of resources,…

A: Cost accounting system: Cost accounting system of an organization consists of procedures and…

Q: Define cost drivers.

A:

Q: Define single-project evaluation,

A: SOLUTION:- Single Project Evaluation is the systematic and objective study of the single ongoing or…

Q: What is the nature of research and development costs?

A:

Q: Which type of cost center has a planning focus, and which type has an evaluation focus?

A: Cost Center: It is a department within an organization to which costs can be assigned.

Q: Define Cost recovery method

A: Cost recovery is a method in accounting wherein a business only records the revenue it earns from a…

Q: Define the term Building scenarios?

A: It is vital for a company to assess its performance under various scenarios that could occur in the…

Q: activity cost pool is

A: First option is wrong because an activity cost pool is not a type of duration because it is a amount…

Q: Identify the output and input variables in both the bottom-up and top-down strategies to cost…

A: Bottom ups of the cost estimate are the most accurate cost estimation process wherein every minute…

Q: Define the term Sponsor's Costs?

A: Sponsorship cost refers to the cost of supporting an event or economic activity for an agent in…

Q: How do strategic factors affect the proper use of relevant cost analysis?

A: Relevant cost analysis is the process of identifying the incremental cost and benefits of deciding…

Q: are measures of activities that require the use of resources and thereby cause costs Value Chain…

A: Solution: Cost drivers are measure of activities that requires the use of resources and thereby…

Q: Define cost management.

A: Cost management is the process of planning and controlling costs in the right direction so that over…

Q: Explain Calculating Total P System Costs?

A: Periodic inventory system also known as P system is a method of stock taking, where stock taking is…

Q: Define opportunity cost

A: Opportunity costs represent the benefits an individual, investor or business misses out onwhen…

Q: Explain the difference between resource spending and resource usage.

A: Resources: Resources are the economic elements that enable people to carry out activities. A…

Q: Outline the rules for identifying the optimal transfer price.

A: Transfer pricing:- Transfer pricing is considered as the value that is attached to those goods and…

Q: Define cost pool?

A: Step 1 The amount of money expended on producing a particular product is referred to as cost. Direct…

Q: Identify and explain the various types of project cost estimates.

A: Project cost estimates are done so that the prediction about the quantity, cost, and price of the…

Q: what is the cost of a project proposal and how is it structure to meet its goals

A: A cost of a project refers to the sum total of all expenditure to be incurred by an organization for…

Q: Define research and development and what are its representative cost driver?

A: Cost drivers: It refers to the object or things which affect the costs of a business. For example,…

Q: Explain an example of value added cost.

A: value-added costs: A value-added costs  add to the desirability of the product or services in the…

Q: Define cost of natural resources.

A: Timber, Mineral deposits, oil reserves, and other various natural resources are considered assets…

Q: Explain standard costs.

A:

Q: Describe briefly the importance of Cost-Benefit Analysis in the selection or development of a…

A: Cost-benefit analysis is an approach to estimate the strengths and weaknesses of a system and…

Q: A determination of cost savings is most likely to be an objective of a

A: The answer is as fallows

Q: What is a sunk cost, and if included in a project how should they be treated?

A: Sunk cost is the cost which is already incurred and it is not relevant for decision making. Examples…

Q: Define the term opportunity cost, and give an example of one.

A: Opportunity cost: It is the benefit which is foregone by choosing next best alternative. In mutually…

Q: Explain the strategic role of cost estimation.

A: Cost estimation: Cost estimation is a technique that assist the management for taking strategic…

Q: Explain Evaluat ing a Single Project?

A: Capital budgeting is referred as the process of decision making which is used by companies to…

Q: Explain the benefits of standard costs.

A: Standard costs means budgeted or predetermined cost for a unit of a business. For example, in…