Cost modelling control accounting cmu.edu draft1

What is the primary focus of project control procedures?

• To suggest possible areas for cost savings

• To complete the project as quickly as possible

• To ensure that every team member is productive

• To identify deviations from the project plan

What is the main purpose of maintaining a project budget?

• To track the CEO's personal expenses

• To guide management decisions

• To calculate employee bonuses

• To advertise the project to potential investors

Tags

NGSS.HS-ESS3-2

Which of the following best describes 'financial control' of a project?

• Costs are constantly reduced to increase profit margins

• Costs are within the detailed cost estimate

• The project has unlimited funding

• All financial decisions are made by the finance department

What is the role of 'forecasting' in project management?

• Forecasting the stock market to increase project investments

• Predicting weather conditions for outdoor projects

• Assessing future revenues, costs, and technical problems

• Predicting the exact completion date of the project

What does the 'percentage-of-completion' method involve?

• Paying workers based on the percentage of the project they complete

• Dividing the project into percentages and completing them in random order

• Reporting period earnings based on the proportion of work completed

• Completing 100% of the project before reporting any income

What is the primary disadvantage of the 'percentage-of-completion' method?

• It only works for construction projects

• It is too complicated for most managers to understand

• It requires estimates which can be manipulated

• It leads to higher taxes for all stakeholders

Tags

NGSS.HS-ESS3-2

What is the purpose of 'cost accounts' in project management?

• To monitor the personal expenses of the project manager

• To keep track of the project's social media accounts

• To calculate the total number of hours worked by each employee

• To record and track the financial transactions associated with a project

Tags

NGSS.HS-ETS1-3

What is a 'project budget' used for?

• Decorating the project office

• Guiding management decisions and controlling costs

• Buying gifts for the project stakeholders

• Paying off government inspectors

How are 'job cost accounts' typically organized?

• Alphabetically by supplier name

• By the phase of the moon

• Hierarchically, with major divisions and sub-divisions

• Randomly, to keep employees guessing

What is the main challenge in forming a project budget in terms of cost accounts?

• Deciding who gets the biggest office

• Finding a calculator that works

• Matching the detailed cost estimate with the organization's cost accounts

• Choosing the right software to use

Tags

NGSS.HS-ESS3-2