Question: A project budget amounting to $4,000,000, calculated with a R.O.M ranging from -50% to +75% has been submitted to management for approval. The budget includes

A project budget amounting to $4,000,000, calculated with a R.O.M ranging from -50% to +75% has been submitted to management for approval. The budget includes a contingency reserve of $1,000,000 and a management reserve of $50,000. However, the management has informed the project manager to calculate the R.O.M on the total cost estimates, rather than on the total budget. In view of this, what is the R.O.M of the total cost estimates.

a. $2,000,000 to $7,000,000

b. $1,500,000 to $5,250,000

c. $1,975,000 to $6,912,500

d. $1,475,000 to $5,162,500

Step by Step Solution

★★★★★

3.31 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed answer for the above question is provided below To calculat... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

Effective leaders understand that actions must be based on facts. Which facts are most important, however, is dependent on how the problem is framed. Failure to adequately define the problem can set...

CIS 620/B Project Plan For the Global Collaboration Enterprise Information System 1200 12th Avenue, Suite 1200 Seattle, Washington 98114 U.S.A. November 11, 2015 Draft Version 19.0 November 11, 2015...

Prepare an Excel sheet summary comparison summary that addresses the following: What type of pension fund does the state provide to employees How is the pension fund actually funded - who pays for it...

Howard county Meryland Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2012 1-Does the government have revenue bonds outstanding that are related to business-type activities?...

12 Chapter A4148 23218 6/8/01 6:25 PM Page 361 12Initiating Objectives After reading this chapter, you will be able to: 1. Understand the importance of initiating projects that add value to an...

Please answer all questions (1-4) on the attached screenshot. Use the attached financial report to answer. County of Santa Clara State of California Comprehensive Annual Financial Report Fiscal Year...

Please using the CAFR fiancial statement to answer the 9 questions in the doc. CH13 (answer questions #1,2,3,4) Ch14 (answer questions #1,3,4,8,11 ) County of Santa Clara State of California...

Answer the selected accounting questions for each part in the word document, using the CAFR Financial Statement to provide answers. Part 5 (#1,3,6,7,8,9) Part 6(#1,2,3,5) County of Santa Clara State...

Briefly describe each of the 10 general criteria for selecting channel members that can be used as a starting point for developing more specialized lists of channel member selection criteria.

9. Identify the most accurate statement. A price floor will have the largest effect if it is set: a. substantially above the equilibrium price b. slightly above the equilibrium price c. slightly...

Who is associated not only with the success of the industrial base but also with the great abuses in business?

Lenny, age 12, has $3,500 interest income from a trust established by his uncle. This is Lenny's only source of income for the year. Lenny's parents are in the 33 percent marginal tax bracket. a....

On January 15 of the current year, Eileen, age 24, receives stock worth $28,000 as a gift from her parents. Her parents jointly purchased the stock six years ago for $12,000. During the year, Eileen...

Bonita Household Products Co. is a diversified household-cleaner processing company. The company's St. Lawrence plant produces two products from a common set of chemical inputs (TLC): a glass cleaner...

Ginny made the following gifts during the current year. Her husband, Ken, made no gifts during the year. Gift of land valued at $250,000 to her husband Gift of $20,000 in stock to her daughter ...

Which of the following are completed gifts, and what is the value of each gift (before any exclusions)? a. In March, Stephanie deposits $30,000 cash into a joint checking account for herself and her...

1. High-profit firms do not need to take on a lot of debt?

Why is it necessary to eliminate services charged by one company in a group to another company in the same group?

Although fund accounting remains in widespread use in managing public funds, explain why funds are not presented in financial statements prepared in accordance with the PSA reporting framework.

P6-7 You are given the following details for the year ended December 31, 2013: Additional information: 1. Grantham owns 80% of the common shares in Lopez and 20% of the common shares in Ceylon...

In each case, identify any divergence between social and private costs. a. Cigarette smoking b. Getting a university education c. Private ownership of guns d. Drilling for offshore oil

Fill in the blanks to make the following statements correct. a. The "formal defence" of free markets is that, if all markets were perfectly competitive, then prices would equal ________ for all...

This question is based on Externalities and the Coase Theorem on the book's MyEconLab at www.myecon-lab.com. Consider a steel producer that dumps one litre of toxic waste into a river for every tonne...