New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
financial management
Practical Construction Accounting And Financial Management 1st Edition Yunfeng Chen, Frederick Barnes Muehlhausen - Solutions
How do these budgets help the construction company?
What are the two types of budgets used by the construction company? What do these budgets represent?
Why are budgets important to the construction company?
What is a budget?
Determine the sources of profit (or loss) for Project CNW17 as outlined here: The contract amount was $995,000 with budgeted job costs of $900,000. Minimum markup rate for overhead and profit is 12%.The project manager was able to buyout the excavating package for $2,000 less than budgeted and the
Suggestways to make the losing profit center profitable.Try to support your suggestions by applying the cost-volume-profit analysis approach when appropriate.
Analyze the results of the profit center analysis done in problem 4 above by dropping the losing profit center. Assume that vehicles used to support the losing center would be sold at no appreciable gain to the company. What is the expected company profit if the remaining profit centers are
Suppose three profit centers are identified by American's management-commercial new work (CNW), commercial remodel (CR), and industrial retrofit (IR). Perform a profit center analysis ofthe 2018 company income statement (Chapter 3, Table 3.11) by applying the following information.
Comment on American's rapid growth. Suggest ways this might have occurred.
Comment on management's distaste for the remodel and retrofit work. What is the most positive aspect about performing this work?
Identify the profit centers or markets for American Construction Company Inc. How did you arrive at this decision?
What is wrong with using a company overhead and profit rate to bid alljobs?
What are the four broad areas for increasing construction company profit? (You may wish to revisit cost-volume-profit analysis to answer this question.)
When will company profit be greater by keeping a losing a profit center?
What issues should be taken into account before dropping a losing profit center?
Why is it important to make an accurate allocation of company costs to profit centers?
If an allocation base cannot be identified, how should the company expense be allocated?
What is the rule for selecting an allocation base for company expenses?
What is the difference between assigning job cost and company cost to profit centers?
Why is it important that a project code identify jobs by profit center? What line items on the company income statement can be accurately assigned to profit centers?
List the steps for completing a company profit center analysis.
The approach to identify company profit centers may vary-by contract type, by market, by type of work-but what characteristic should be common to all?
What products are generated by the company profit center analysis?
What is the purpose of profit center analysis when applied to the company income statement?
List the five sources of profit when completing a construction project. Describe each source.
What is the purpose of profit center analysis when applied to a construction project?
Perform a trend on the ratios discussed in this chapter. For aging ratios such as the average age of accounts receivable, the trend will include results from the last three years. For all other ratios, the trend will include all four years. Do not include working capital because the change in this
Use the completed vertical analysis for the period ending March 31, 2018, and the costvolume-profit analysis to answer the following questions.a. What is the cost structure?b. Given the cost structure as shown on the income statement, what volume in dollars must be generated for the company to
Perform a vertical analysis on the income statement for the period ending December 31, 2018.If possible, compare two key relationships found on the income statement with the industry ratio norms that are published by Bizminer, Risk Management Association, or other relevant sources.
Compare the results ofitems 1 and 2 above. What do you conclude?
On the same spreadsheet, perform a horizontal analysis and a use-source analysis of the balance sheet for the period ending December 31, 2018, by comparing the ending balance to the beginning balance for this fiscal period.Then, answer the following questions.a. How did the company use its capital?
On the same spreadsheet, perform a horizontal analysis and a use-source analysis of the balance sheet for the period ending December 31, 2017, by comparing the ending balance to the beginning balance for this fiscal period. Then, answer the following questions.a. How did the company use its
Why is the R-Score a better measure of risk than other ratios might be?
What does the R-Score indicate?
What does the gross profit to revenue ratio indicate?
What does the profit before tax to total assets ratio indicate?
What is the difference between the net profit to net worth ratio and the ROI ratio?
What do operating ratios indicate?
What is the advantage, if any, for the debt to equity ratio to be high? What is the disadvantage?
What is the advantage to a low fixed asset to net worth ratio? What caution is advised?
What do leverage ratios indicate?
What does the cash demand period indicate?
When, if ever, is overbilling the project acceptable?
If the average age of accounts payable exceeds 45 days, what two results affecting vendor relation and payment will occur?
What does the cash conversion period indicate?
Why are projects underbilled, and which ratio monitors the degree of underbilling?
Why should the average age of material inventory approach 0 for the general contractor?
Provide two reasons for the average age of accounts receivable to exceed 45 days.
What do the following ratios indicate? What does the ratio result indicate when the trend is below the acceptable range? Above the acceptable range?a. Current ratiob. Quick ratioc. Working capitald. Working capital turnover ratio
Define liquidity as indicated by the RMA.
What two organizations publish annual ratio results for the construction industry?
How should ratios be analyzed?
What is a financial ratio?
How are the upper and lower limits of the breakeven graph found?
What is the relevant range and how is it applied to the breakeven graph?
What does the slope of the total cost line represent on the breakeven graph?
What is the intersection of the revenue and total cost lines called on a breakeven graph?
Create a cost-volume-profit graph (breakeven graph) and label all lines.
Explain the process of vertical analysis. Which base is used for the balance sheet and which base is used for the income statement?
The change in current assets is $500,000 and the change in current liabilities is $400,000.What is the change in working capital, and is this change good or bad?
State the rules for determining whether the change in a balance sheet account is a use or a source.
What are the three key questions when viewing the results of a use-source analysis?
List the four questions asked when comparing the actual to budgeted financial statements with horizontal analysis.
List the four questions asked when comparing two subsequent years' financial statements with horizontal analysis.
Explain the process of horizontal analysis.
Provide two examples where horizontal analysis may be applied.
How is the cost structure for a construction company defined?
For questions 8 and 9, what one important assumption must be made to answer the question?
If a fixed cost is $15,000 and the revenue is $1,000,000, what is the expected fixed cost if revenue is $1,200,000?
If a variable cost is $200,000 and the revenue is $1,000,000, what is the expected variable cost if revenue is $1,200,000?
Define the terms variable cost and fixed cost as applied in this chapter and provide examples of each type of cost common to the construction industry.
Define the terms direct cost and indirect cost as applied in this chapter and provide examples of each type of cost common to the construction industry.
Define the term full cost.
List the three important concepts contained within this definition of cost.
Define the term cost as applied in this chapter.
List at least four questions that need to be answered during the line-item analysis process.
What is line-item analysis and what is its purpose?
What account names are used for overbillings and underbillings?
What is the difference between an overbilling and an underbilling?
What is a contra account? Provide an example.
What is liquidity as it is applied to financial accounting?
What is the difference between a real account and a nominal account?
State the question we must ask and rules we must use when entering a financial transaction as a debit or a credit.
What are a debit and a credit in financial accounting?
What is retention, and why is it used?
Do any financial transactions affect the flow of cash that are neither a revenue nor an expense? If so, provide an example. What document summarizes changes to these accounts during an accounting period?
What document summarizes the revenue and expense transactions for an accounting period?
State the extended financial accounting equation by applying revenue and expense.
What is an expense transaction, and what is the impact of expense on what a company owns and owes?
If50 hours of labor costing $1,000 is used to install 100 linear feet of pipe costing $3,000, what data would be collected for financial accounting and why?17.What is a revenue transaction, and what is the impact of revenue on what a company owns and owes?
If a company applies the billings method to recognize revenue this year, why can it not select the POC method next year?
Which accounting principle states that owner financials should not be intermingled with company finances?
What accounting principle governs the process of selecting a method to recognize revenue?
What accounting principle understates the value of appreciable assets?
List the eight financial accounting principles that are applied when entering a financial transaction. Explain each principle.
What is an internal financial transaction? Provide an example.
What is an external financial transaction? Provide an example.
What is a financial transaction?
State the basic financial accounting equation.
What document summarizes what a construction company owns and owes? List both names.
Showing 100 - 200
of 4135
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last
Step by Step Answers
Get 50% OFF
Claim Now
