ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.27 : A biochemical engineering consultancy applies construction accounting in its finance. Its project began on 1 January 2010. Total revenue generated from the project was $9000. On 1 January 2011 as the budget, $2000 had been spent, with $6000 expected. However, the project cost increased latter, causing deviation from its initial budget on 1 January 2012, where $7000 had been spent, with $1400 expected. Let (estimated total cost) = (spent cost) + (expected cost to be spent), (percentage completion) = 100 (spent cost) / (estimated total costs), (total expected profits) = (total revenue) - (estimated total costs). Calculate : (a) total expected profits on 1 January 2011 and 1 January 2012; (b) estimated total cost as and not as the budget; (c) percentage completion of the project since the project began, in the first and second years.
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.27 : On 1 January 2011 (as the budget), estimated total costs = $2000 + $6000 = $8000, total expected profits = $9000 - $8000 = $1000, percentage completion on first year = 100 ($2000 / $8000) = 25%. On 1 January 2012 (not as the budget), estimated total costs = $7000 + $1400 = $8400, total expected profits = $9000 - $8400 = $600, percentage completion on second year = 100 ($7000 / $8400) = 83.33%. Final answer : (a) Profits : $1000 (1 January 2011), $600 (1 January 2012). (b) Costs : $8000 (as the budget), $8400 (not as the budget). (c) Percentage completion : 25% (first year), 83.3% (second year). The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
Is This Answer Correct ? | 0 Yes | 0 No |
Name some common causes of control valve noise?
Explain various protein purification techniques?
What is the best way to handle bend or turns in slurry piping systems?
What is difference between overall heat transfer coefficient & individual heat transfer coefficient?
How does a chemical get ignited without external heat source on reaching its auto ignition temperature
which is more effective , a single extraction with a large volume of solvent or several small volume extractions? Explain.
Where the Induced draft, forced draft & balanced draft furnace are to be used? Selection of furnaces are based on which criteria?
How can we identify a poisoned food if we are not able to sense it?? . .,(naturally by colour ,smell etc. . .)
from which book shud i will prepare for the hpcl and various company exma i m fresher and my basic is not strong could u suggest from where to start
What is pneumatic conveying?
What are some guidelines for designing for liquid and gas velocities in process plant piping?
y we do not differ b/w atomic mass and atomic wieght? from engrtauseef2008@gmail.com