Lecture 13

Question 1

Objectives of a Project Cost System
The two objectives are:
* Develop cost and production information required for _______ estimating - Development of Cost Control Plan: Direct cost, Indirect costs
* Develop production information required to _________ the job budget – Implementation of Cost Control Plan: Progress calculations

Answer 1

accurate, manage

Question 2

Project Cost Control
* A profitable project (and company) depends upon:
* Keeping within the cost budget
* Knowing when and where job costs are deviating
* _________ actual costs to those budgeted
* Determine root _____(s) of deviations
* Develop and implement a _________ strategy
* __________ to ensure the strategy works

Answer 2

compare, cause, recovery, monitor

Question 3

Project Cost Accounting
Project cost accounting consists of:
* ______________ determination of productivity and _____ data
* _________of the data

Answer 3

continuous, cost, analysis

Question 4

Project Cost Accounting:
* Presentation of the _______ in summary form
* Expands typical accounting by:
- Adding information on work accomplished
- Providing productivity ___ in addition to costs
* Project cost accounting________, not replaces supervision

Answer 4

results, data, supports

Question 5

Cost Codes
Cost Coding Systems:
* _________________ Uniform Construction Index (from Construction Specifications
Institute, CII)

Answer 5

masterformat

Question 6

MasterFormat Uniform Construction Index
o ____________ by R.S. Means Building Construction Cost Data
o Given a ________ system, many analyses could be conducted by computer

Answer 6

Adopted, coding

Question 7

Cost Codes are essential to:
* Tie the entire job cost _________ together
* Enable granularity required to identify cost ___________ on a time basis
* Link costs with _________ (activities or tasks)
* Integrate the job cost system into the company cost system

Answer 7

system, anomalies, schedule

Question 8

Categories of Cost
* 4 categories of cost are tracked:

Answer 8

labor, material, equipment, subcontract

Question 9

Labor and equipment are the most _______
Other costs are often associated with _______

Answer 9

volatile, overhead

Question 10

Cost Reports
Cost reports should display certain characteristics. They should:
1) Be ______
2) Provide appropriate ________
3) Clearly ________ cost anomalies
4) Provide appropriate __________

Answer 10

timely, detail, identify, information