In the PW method of alternative evaluation, equal service means that:a. all projects must start at the same time.b. all projects are evaluated over the same time period.c. all projects must have the same operating cost.d. all projects have equal salvage values.
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In the PW method of alternative evaluation, equal service means that:
a. all projects must start at the same time.
b. all projects are evaluated over the same time period.
c. all projects must have the same operating cost.
d. all projects have equal salvage values.
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- Successful completion of a construction project depends on the supply of materials and labor as well as the weather condition. Consider a given project that can be successfully completed if either one of the following conditions prevails: (i) Good weather and at least labor ormaterials are adequately available, (ii) Bad weather but both labor and materials are adequately available.Define:G = Good weatherG' = Bad weatherL = Adequate labor supplyM = Adequate materials supplyC = Successful completionSuppose P(L) = 0.7; P(G) = 0.6 and L is independent of both M and G. If the weather is good, adequate supply of materials is guaranteed, whereas the probability of adequate supply of material is only 50% if bad weather prevails.a. Formulate the event of successful completion in terms of G, L, and M.b. Determine the probability of successful completion.c. If the project was successfully completed, what is the probability that labor supply had been inadequate?In Benefit/cost ratio analysis, if the salvage value is used to recover the first cost, it is being considered as: Select one: a. negative cost b. benefit c. disbenefit d. costa. You are requested to assess the projects using payback period method and suggest the director on the selection of the project. b. You are also requested to appraise the management on the limitations of Payback period method.
- In a maximum of two lines, give an explanation to the following statements: While comparing projects with unequal time frames, evaluation via the equivalent annual net benefit method may be simpler than via the roll-over method.TRUE OR FALSE a, A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making. b. One way to increase the effective utilization of a bottleneck is to reduce the number of defective units. c. Two or more products that are produced from a common input are known as joint products. d. If the salvage value of equipment at the end of a project is highly uncertain, the salvage value should be ignored in capital budgeting decisions. - e. A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making. f. Eliminating nonproductive processing time is particularly important in a bottleneck operation. g. In a decision to drop a product, the product should be charged for rent in proportion to the space it occupies even if the space has no alternative use and the rental payment is unavoidable. PLEASE ANSWER D,E,F,GTRUE OR FALSE a, A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making. b. One way to increase the effective utilization of a bottleneck is to reduce the number of defective units. c. Two or more products that are produced from a common input are known as joint products. d. If the salvage value of equipment at the end of a project is highly uncertain, the salvage value should be ignored in capital budgeting decisions. - e. A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making. f. Eliminating nonproductive processing time is particularly important in a bottleneck operation. g. In a decision to drop a product, the product should be charged for rent in proportion to the space it occupies even if the space has no alternative use and the rental payment is unavoidable.
- Briefly discuss the treatment of the following costs in short term decision making: Cost of specialist machine, Residual value, Depreciation Increamental and SankcostsIdentify the type of the following costs: These include costs of searching new knowledge and identifying and selecting possible alternatives. These include costs of designing from selected alternative and using knowledge gained from research. Group of answer choices R&D, Intangible asset costs Research costs, Development costs R&D, Regular expense Development costs, Research costsWhy is the original cost estimate corrected based on buyout data? What three types of project costs present the greatest risk to the project manager? What are project labor curves used for?
- For the reader's advantage, provide a cost-benefit analysis of the project. How can the value of a product or service's cost reductions be calculated?choose the letter of the correct ans An expenditure made in connection with a machine being used should be *a. Expensed immediately if it merely extends the useful life but does not improve the qualityb. Expensed immediately if it merely improves the quality but does not extend the useful lifec. Capitalized if it maintains the machine in normal operating conditiond. Capitalized if it increases the quantity of units produced by the machineIf the project is to be finished in a shorter amount of time, what is the best way to accomplish this goal at the least cost?