The term stands for technical, economic, legal, operational and schedules feasibility. Discuss these feasibilities briefly. And elaborate cost-benefit analysis under economic feasibility.

Q: The acronym TELOS  provides guidance for accessing project feasibility. The term stands for…

A: The feasibility of the proposed project is evaluated by using the acronym TELOS. T - Technical – To…

Q: Discuss the importance of tracking actual and committed costs once a project has commenced.

A: The question is based on the concept of cost control and calculation of cost variance  project…

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: Provide an example of a “good” externality, that is, one that increases a project’strue NPV.

A: The question is based on the concept of externality in project management. Externality is define as…

Q: Sunk costs should always be included when considering the cost of an activity. True or false, and…

A: Sunk cost are those cost which are already incurred by the business , But business cannot recovered…

Q: Explain the following terms: practical capacity, cost of resources supplied, cost of resources used,…

A: Resource: It refers to a supply that can be used for producing the benefits or by making use of…

Q: What is meant by relevant costs and there use in making short-term decisions?

A: Cost refers to the amount of expenditure incurred by an individual or an entity in relation to goods…

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 Analysis Period Equals Project Lives?

A: The concept of analysis period equal to project lives is basically used in present worth analysis.

Q: Besides the dollar cost, what other costs should you consider when comparing alternative solutions…

A: A company will incur various costs to earn revenue. The costs can be either direct or indirect costs…

Q: A project's terminal value is the ______.

A: A project's terminal value is the sum of the future values of the cash inflows compounded at the…

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: Describe the following terms: (a) residual value, (b) guaranteed residual value, and (c) initial…

A: (a) Residual value: It is the projected ending value of an asset after its useful life or lease…

Q: Explain the usefulness of contribution margin and responsibility margin in making short-term…

A: Decision-making process: Decision making can be defined as the process of making choices through…

Q: Write cost pool, cost driver, activity cost, budgeting.   What are the assumption of CVP analysis?…

A: Answer:  Write cost pool, cost driver, activity cost, budgeting.   Cost Pool is the sum total of…

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: Pre-determined costs are future costs which are ascertained in advance of production on the basis of…

A: Cost accounting is the accounting of the cost incurred during the accounting period. This helps the…

Q: How is life-cycle-cost analysis useful?

A: Life Cycle Costing (LCC) is a process of accounting which is used by the owner or management of an…

Q: How can we calculate the Total Present Cost for the Base Case and Alternative?

A: The question is based on the concept of calculation of cost benefit analysis of base case and…

Q: Define the term accelerated cost recovery system (AC RS)?

A: The AC RS is a method of depreciation. It is used for depreciating the property for tax purposes

Q: Describe the potential costs and benefits of LBOs?

A: LBO is the acquisition method where the company used to use the borrowed money in order to acquire…

Q: What is value-chain analysis? What role does it play in strategic cost analysis?

A:

Q: Why is an incremental analysis necessary when conducting a rate of return analysis for cost…

A: Incremental analysis considers only the relevant cash flows and it does not consider the…

Q: Discuss ROPs and to tal costs.

A: Answer: ROP is defined as reorder point. This is the inventory level that is to be maintained at the…

Q: Beside the dollar cost, what other costs should you consider when comparing alternative solutions to…

A: There could be lot of factors which are to be considered while comparing alternative solutions to a…

Q: Classify the following fixed costs as normally being either committed or discretionary:c. Research.

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Cost Management is extremely important for running successful projects. With reference to this:…

A: Project Cost: It refers to the total funds that are required to complete a project.

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: How can we identify the sponsor's costs and quantify them?

A: Sponsorship cost: Many times firms and individuals pay either a part of the entire amount of expense…

Q: Calculate the total relevant cost. Do you agree with the president's conclusion?

A: Note: Allocated facility level cost is a fixed cost; hence it is not taken into consideration.

Q: Understand how fixedand variable costs behave andhow to use them to predictcosts.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Classify the following fixed costs as normally being either committed or discretionary:f. Management…

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Discuss the techniques that can be applied to obtain relevant and accurate cost estimates.

A: The question is based on the concept of cost estimation, which is one the most important parameter…

Q: Explain how the Analysis Period Equals Project Lives?

A: Answer: For the present worth analysis, the definition of analysis period equivalent to project…

Q: The concept of present worth allows engineers to convert costs and benefits to an equivalent value…

A: The present worth means present value of all the benefits and costs at given point point of time. It…

Q: Once standard costs are established, what conditions wouldrequire that standards be revised?

A: Standard costs: Standard costs are the per-unit cost that is expected to be incurred under normal…

Q: Combine the different component costs to determine the firm’s WACC.

A: WACC is the organization  cost of capital in which each component (debt and equity) is considered on…

Q: While an engineering manager may prefer to use CFAT estimates to evaluate the AW of a project, a…

A: EVA, which stands for economic value added, seems to be a term based on the notion that 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: Define the term net realizable value, and explain how this concept can be used to allocate joint…

A: