A consulting company has designed the accompanying spreadsheet model to compute a project's revenues and profits. The costs ofeach project include technology costs, labor costs, and project manager (PM) bonus. The PM bonus is computed as 10% of the profit ofthe project if the project makes a profit and 0 if the project loses money. The spreadsheet model seems to be producing erroneousresults.Click here for the Excel Data Filea. Use the model auditing tools to identify the error. The error is due toO circular referenceO incorrect cell referenceO invalid user inputsO none of the aboveb. Repair the spreadsheet so that it produces correct outcomes. What should be the PM bonus for Project 1? What is the project profitfor Project 2?PM bonus for Project 1:Final project profit for Project 2: Project 1 Project 2 Project 3Project revenue:50,0007500035000Technology costs: 5,00035001000Labor costs:350005000037000PM bonus:000Project profit:000

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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“Budgeting is the same across different organisations and industries, so organisational strategy, industry and the broader goals and objectives of a business are not of much importance in the budgeting process”. Do you agree with this statement? Explain why or why not Can you please type a 150-200 word response to this. I have had two experts answer this and both responses have been below average with grammar and answering the question. Please allow for an expert to properly answer this in 150 words.
The Chief Information Officer (CIO) and the Managing Director (MD) of Illustrious Limited recently had the following conversation regarding thedevelopment of a new information system for the company: CIO: The way to go about the analysis is to first examine the old system, such as reviewing key documents and observing the workers performing their tasks. Then we can determine which aspects are working well and which should be preserved. MD: We have been through these types of projects before, and what always ends up happening is that we do not get the new system we are promised. Instead we get a modified version of the old system. CIO: I can assure you that will not happen this time. My team just want a thorough understanding of what is working well and what is not. MD: I would feel much more comfortable if we first started with a list of our requirements. We should spend more time in determining what exactly we want the system to do upfront. Then your team can come in and determine…
Consider the following example. A risk-neutral worker can choose high or low effort. The manager cannot observe the worker's action, but the manager can observe the realized revenue for the firm (either $100 or $200). The probability of each revenue depends on the worker's effort: Low effort: cost of effort: $0 probability of low revenue ($100): 75% probability of high revenue ($200): 25% High effort: cost of effort : $11 probability of low revenue ($100): 25% probability of high revenue ($200) : 75% The manager offers to give the worker a flat wage of $10 and a bonus of $20 if revenue is high. Given this payment scheme, the worker will put in ✓ effort. The firm's expected profit is $ The firm is considering an investment that would increase worker morale. By making work more enjoyable, the program would reduce the worker's cost of effort from $11 to $9. If it costs the firm $20 to implement this program, the firm's expected profit if they implement the program is $ ✓. The firm…
With the aid of computer software, managers can vary assumptions regardingselling prices, costs, and volume and can immediately see the effects of eachchange on the break-even point and profit. Such an analysis is called A. “What if” or sensitivity analysis.B. Vary the data analysis.C. Computer aided analysis.D. Data gathering.
Develop scenarios where a project manager has to cope with pressures from stakeholders with respect to cost and time overruns and outline how advanced planning and scheduling technique can help overcome these issues. 200-300 words
Use of Earned Value Analysis in performance reportingWhat are the different metrics used? What is the significance of these metrics? Has usage of EVA analysis improved project performance? Have organizations successfully used EVA? Give examples from real-world projects. Are there failures? What are some of the challenges in the adoption and usage of EVA analysis in different industry settings?
Variance analysis can be useful in nonmanufacturing entities, especially when tasks are repetitive in nature. This allows management to analyze costs and make decisions to avoid higher expenses. In addition to the previous example involving housekeeping and hotels, can you think of any service-type repetitive tasks that could benefit from management analysis? Please respond to at least one classmate and cite at least one reference (can use your book as one reference).
Adams Corporation evaluates divisional managers based on Return on Investment (ROI) and has provided the operating results of the Northern DIVislon from last year. The Controller has asked you to compute the ROI and Residual Income based on data from last year and If the alvislon adds a new product line. Use the Information Included in the Excel Simulation and the Excel functions described below to complete the task. • Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, "=G5" was entered, the formula would output the result from cell G5, or 4.00 In this example. • Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: - (plus sign to add), - (minus sign to subtract). * (asterisk sign to multiply), and (forward slash to divide). From the Excel Simulation below, If in a blank cell "=G5-G6" was entered, the formula would add the values…
Scenario You are the project manager working on a Market Mailing project. The client informed your project team during the project planning phase that the project must be completed on time in order to sync with the launch of the new product. Also, the client informed you and the team that there is no cash reserve for the project so the project has to be completed within budget. Below is the status update that two project team members (Jennifer and Ben) put together. Based on the project's performance to date, complete the Rating Project Risk exercise on the next page. Task| Budgeted Actual Percent works Estimate Planned Planned Actual Projected| Planned to Actual Resource Resource Utilization Utilization works end date work complete complete date start start date end cost cost date to date 60 hours I $600 50 hours I $500 June 15 March June 15 120 hours / $1200 120 hours / $1200 A 30% 90 hours March 25% 30% I $900 15 30 May 15 April 8 B 30% April 1 May 30 30% 60 hours I $600 50% Rating…
. A few accounting interns were discussing the timing of revenue recognition for long-term construction contracts. The discussion focused on which method was most like the typical revenue recognition method recognizing revenue at the point of product delivery. One side argued that recognizing revenue upon project completion was preferable because it was analogous to recognizing revenue at the point of delivery. This side was represented by let’s say Karl. The other side disagreed and supported recognizing revenue over time, stating that it was analogous to accruing revenue as a performance obligation was satisfied. The second side also pointed out that an advantage of recognizing revenue over time is that it provides information sooner to users. This side was represent by let’s say Doug. Please address your correspondence to the accounting office staff. What is the guidance for recognizing revenues in long-term construction contracts? B. Please provide examples of each approach
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