Fluor Corporation is analyzing its project costs using Standard Cost Accounting:

Requirements:

• Calculate the Standard Cost per construction project:
  • Direct Costs: $10,000,000
  • Indirect Costs: $5,000,000

• Apply Marginal Cost Accounting to assess the cost impact of taking on an additional project.
• Evaluate the benefits of Activity-Based Costing in allocating project management costs.
• Discuss how each costing method influences profitability and project bidding strategies.

Standard Cost Calculation:

Category	Amount per Project ($)
Direct Costs	$10,000,000
Indirect Costs	$5,000,000
Total Standard Cost per Project	$15,000,000