AIC - Management Flashcards
Which of the following is a fundamental
element of a contract?
mutual acceptance
Which of the following contract types is
generally considered to have the most risk
for the contractor?
lump sum
Which of the following contract types is best
used if the scope is well defined but not the
quantities of material?
unit price
In which delivery method is the construction
administrator most like a consultant?
CM agency
Which statement is true about the designbuild
delivery method from the owner’s
perspective?
There is a single source of fault for
building system failures.
Which delivery method has the most risk for
the contractor?
design-build
Which of the following is a major difference
between a CM agency and a CM at risk?
caps the construction costs the owner is
required to pay
Under which legal structure are the least
total taxes paid for the goods and services
provided by the company?
sole proprietorship
In the construction industry, which legal entity
is often a temporary arrangement?
joint venture
Which is an advantage of forming a
corporation?
Shareholders have reduced personal
liability.
Current Ratio
Current Assets /
Current Liabilities
Quick Ratio
(Cash and Equivalents + Accounts Receivable) /
Current Liabilities
Days Receivable
Days receivable indicates the average number
of days a company takes to receive payment.
365/ (Revenue/Trade Receivables)
Days Payable
Days payable indicates the average number
of days a company takes to make payments
365 / (Direct Cost/Accounts Payable)
Working Capital
Working capital measures available funds for
investment in operations to generate future
revenue and profit.
Current Assets – Current Liabilities
Fixed/Worth
Fixed/worth is the ratio that measures the
amount in which the owner’s equity is invested in
fixed assets
Net Fixed Assets /
Tangible Net Worth
Debt/Worth
Debt/worth is the ratio of capital contributed
by creditors and the capital contributed by the
owners.
Total Liabilities /
Tangible Net Worth
Return on Investment (ROI)
ROI measures the effectiveness and rate of
return on invested capital.
Net Profit before Taxes /Tangible Net Worth × 100
Return on Assets (ROA)
ROA measures the effectiveness of asset
utilization.
Net Profit before Taxes / Total Assets × 100
A company has $10,000 in cash, $20,000 in
equipment, and $20,000 in accounts
payable. The tax rate is 13%. What is the
current ratio?
$10,000/$20,000 = 0.5
What is the return on assets assuming a net
profit before tax of $15,000 and $30,000
total assets?
$15,000 / $30,000 x 100 = 50%
A company has $50,000 in equipment,
$20,000 in cash, and $30,000 in accounts
payable. How much working capital does it
have?
$20,000 - $30,000 = ($10,000)
Which chart would be the most appropriate
to show the percentage of fall protection
safety violations compared to all safety
violations?
pie chart
Which of the following is a management
system used to improve customer
satisfaction?
All the above - TQM (Total Quality Management)/ Six Sigma/ Lean
Which management system was developed
based on Toyota’s Production System?
Lean
Which of the following should a construction
professional provide when delivering
services to his or her clients based on the AIC
code of ethics?
management excellence
