Manage Project Costs

Running head: MANAGE PROJECT COSTS
Manage Project Costs
Name of the Student:
Name of the University:
Author’s Note:

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MANAGE PROJECT COSTS
Table of Contents
Activity 2.........................................................................................................................................4
Recommendation:........................................................................................................................5
Activity 5:........................................................................................................................................6
Answer 1:.....................................................................................................................................6
Answer to question 2:..................................................................................................................6
Answer to question 3:..................................................................................................................7
Activity 6:........................................................................................................................................8
Answer A: Negative variance in Personnel Budget:...................................................................8
Answer to B:................................................................................................................................8
Activity 7.........................................................................................................................................9
Activity 8.........................................................................................................................................9
Requirement 1..............................................................................................................................9
Requirement 2............................................................................................................................10
Requirement 3............................................................................................................................11
Requirement 4............................................................................................................................11
Requirement 5............................................................................................................................12
Activity 9.......................................................................................................................................12
Requirement 1............................................................................................................................12
Requirement 2............................................................................................................................12

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Requirement 3............................................................................................................................13
Activity 10.....................................................................................................................................13
Activity 11.....................................................................................................................................14
Question 1..................................................................................................................................14
Question 2..................................................................................................................................15
Question 3..................................................................................................................................16
Question 4..................................................................................................................................16
Question 5..................................................................................................................................17
Project 1.........................................................................................................................................18
Project 2.........................................................................................................................................24
Budgeting Approach in Project Management............................................................................24
Introduction................................................................................................................................24
Areas to which Budgets are Applicable.....................................................................................24
Primary Functions of a budget...................................................................................................25
Supporting Data for Departments..............................................................................................26
Users of the Budgets..................................................................................................................26
Conclusion.................................................................................................................................27
Project 3.........................................................................................................................................28
Profit and Loss Statement..........................................................................................................28
Statement of Retained Earnings.................................................................................................28

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Balance Sheet.............................................................................................................................29
Cash Flow Statement.................................................................................................................29
Reference.......................................................................................................................................31

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Activity 2
Particulars Details Access IT Vision IT Total IT
Quoted price A $84,000 $105,000 $65,000
Cost for technical
support/yr. B $42,000 $0.00 $0.00
Service charges C $0.00 $10,000 $0.00
Hardware cost D $0.00 $0 $22,500
Total cost
(A+b+C+D)=
E
$126,000.0
0
$115,000.0
0
$87,500.0
0
Life span of the Goods
(in Year) F 7 10 5
Cost/yr E/F $18,000.00 $11,500.00
$17,500.0
0
Working Note 01:
Cost of technical support per year in Access IT = $6000
Total life span of the Goods = 7 years
Therefore total cost incurred = (cost of technical support) * (number of years)
= 6000 * 7 = $ 42000
Working Note 02:
Service charges of Vision IT = $500
Number of service per year = 2 times
Total life span of the Goods = 10 years
Therefore total cost incurred = service charge * number of services/ yr * Total life span
= $500 * 2 * 10

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= $10000
Recommendation:
 Safe hand insurance company should select the Vision IT to purchase the AIS, because
the calculation based on the supplier’s quotations addresses that cost incurred per year is
less in Vision IT.
 To, determine the availability of the financial support of an organisation to meet the
uncommitted requirements of an organisation laid on the company’s budget allocation
and resources planning (Henderson et al. 2015). Since, the budget prepares the road map
of expenditure to achieve the needs of an organisation in an efficient manner and the
resources planning assigns key to monitor the financial activity.
 An effective internal control system will significantly reduce the business risk and help in
workout in an effective and efficient manner like a reliable financial statement, complete
and accurate information (Hoyle, Schaefer and Doupnik 2015). Since, insurance is a
complex management system with a lot of paper work, which may hamper the
productivity. To, implement a strong internal control system AIS (Advance Insurance
System) could be the best choice. AIS assist the insurance company in the following
sector-
1. Underwriting
2. Claim processing
3. Financial management
4. Agency management
5. Human resources
6. Risk management

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Activity 5:
Answer 1:
Management accounting is regarded as the effective accounting system and to minimize
its limitation the accountants can perform the following activities;
a. Simplifying the decision making procedure: To overcome the limitations the
management accountant can create a detail technical report with the easy interpretations
(Warren and Jones 2018). This would enable the management accountant to undertake
the appropriate decisions for the company betterment.
b. Cost transparency: The management accountant to overcome the limitation should work
with the IT department more closely. This actions would help in providing cost
transparency to the company.
c. Assisting in the goal completion objectives: The management accountant can help in
attaining the long term goals (Pettigrew 2014). The management accountant can help in
achieving the goals because of the detailed information and the strong as well weak areas
of the company can be highlighted.
Answer to question 2:
The procedure necessary to follow the financial data are given below;
a. To access the financial data of the organization it is necessary to obtain the financial
reports of the company

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b. The access to an organizations interim financial reports can also be made to access the
financial reports of the company (Kaner 2014).
c. Another procedure to gain access to the financial data is to review the key financial
statements based on the context of the relevant accounting standards.
Plans that are necessary for efficient operations of a team:
a. Creating an inspiring working environment where digitally minded people can be
allowed to allow a creativity flow.
b. Fostering the strong company culture by giving the team with small perks such as place
where they can relax while brainstorming.
c. Helping the team to keep the clear mind and focus for maximizing the productivity of day
to day activities.
Answer to question 3:
Participating the workers in the decision-making procedure has contributed in significant
creation of value in several organizations. Below listed are the ways through which employee
participation helps in taking decision;
Participation with the help of suggestive schemes: Encouraging the employees to bring new
and unique ideas can significant contribute to organization success on matters relating to cost
minimization (Kieso, Weygandt and Warfield 2016). This involves developing a full-fledged
procedure which may help in adding value to the functions of organization and creating a healthy
environment as well as work culture.