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MANAGEMENT PROJECT Cost TABLE OF CONTENTS FORMATIVE ASSESSMENT

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Information needs from project and relation with costing10 ACTIVITY 10 10 Significance of collecting as well as maintaining appropriate records 10 ACTIVITY 11 10 1. Comment on information provided in table 11 SUMMATIVE ASSESSMENT 1 11 QUESTION 1 11 Preparation of Trial Balance sheet11 QUESTION 2 12 Description of services cost analysis and ways for undertaking this analysis 12 QUESTION 3 12 Importance of variance 12 QUESTION 4 13 Information included in cost-benefit analysis along with its advantages and drawbacks13 QUESTION

MANAGEMENT PROJECT Cost TABLE OF CONTENTS FORMATIVE ASSESSMENT

   Added on 2020-07-22

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MANAGEMENT PROJECTCOST
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TABLE OF CONTENTSFORMATIVE ASSESSMENT........................................................................................................1ACTIVITY 1....................................................................................................................................1Factors which needs to considered while determining resource requirements......................1ACTIVITY 2....................................................................................................................................1A. Quote of Access IT Company...........................................................................................1B. Quote of Vision IT Technical Consultants........................................................................1C. Quotation of Total IT Solution..........................................................................................2ACTIVITY 3....................................................................................................................................21. Reasons due to which scope and nature of budgetary planning activity needs to bediscussed with colleagues.......................................................................................................22. Significance of cash flow budget.......................................................................................23. Method through which availability of financials can be determined.................................3ACTIVITY 4....................................................................................................................................4Requirements to review internal control procedures..............................................................4ACTIVITY 5....................................................................................................................................41. Strategies to minimise shortfalls of the management accounting......................................42. Process needs to consider for accessing financial plans.....................................................53. Comment on the statement provided and implications for expenditures...........................5ACTIVITY 6....................................................................................................................................51. Information which included in personnel budget...............................................................52. Necessity for providing evidence in order to support conclusions.....................................6ACTIVITY 7....................................................................................................................................6Data required in P&L account for particular job and method for evaluating the information6ACTIVITY 8....................................................................................................................................71. Preparing checklist which can be considered at the time of report writing........................72. Five errors which incur while preparing financial reports.................................................73. Need of appropriate reports and financial information for managing project....................84. Steps need to take while charges wrongfully added in BRS..............................................85. Calculation of net income...................................................................................................9ACTIVITY 9....................................................................................................................................9
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1. Ways to include project management sections while finalising accounts..........................92. Communication methods....................................................................................................93. Information needs from project and relation with costing...............................................10ACTIVITY 10................................................................................................................................10Significance of collecting as well as maintaining appropriate records................................10ACTIVITY 11................................................................................................................................101. System which needs to chose...........................................................................................102. Comment on information provided in table.....................................................................11SUMMATIVE ASSESSMENT 1..................................................................................................11QUESTION 1.................................................................................................................................11Preparation of Trial Balance sheet.......................................................................................11QUESTION 2.................................................................................................................................12Description of services cost analysis and ways for undertaking this analysis.....................12QUESTION 3.................................................................................................................................12Importance of variance.........................................................................................................12QUESTION 4.................................................................................................................................13Information included in cost-benefit analysis along with its advantages and drawbacks....13QUESTION 5.................................................................................................................................14Objectives of business purchasing policies as well as aspects involved in them.................14SUMMATIVE ASSESSMENT 2..................................................................................................15PROJECT 1....................................................................................................................................15PROJECT 2....................................................................................................................................17Budget...................................................................................................................................17PROJECT 3....................................................................................................................................19REFERENCES..............................................................................................................................31
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FORMATIVE ASSESSMENTACTIVITY 1Factors which needs to considered while determining resource requirementsA material which needed in order to meet something in the organisation and anyworkplace is known as the resource. There are various kinds of resources included when anentity is going to consider a new project in the workplace. Such resources include financial,human, raw materials, equipment, processes, intangible assets etc (Mályusz and Varga, 2017). Atthe time of determining that, which resources will be required in the project some aspects shouldconsider. Further, factors need to keep in mind are listed below:Very first thing to be considered is that businesses or projects are of the what type ornature like professional, services, manufacturing, sales etc. Estimated users of those resources which are going to provide them for utilisation.Size of the company such as sole trader, limited, national, international etc. Geographical location Scope of the project or operations ACTIVITY 2A. Quote of Access IT CompanyCost of AIS = $84000 for 7 yearsAdditional cost = 6000 per yearTherefore, each year total cost of Access IT firm's quotation is worth of Cost of AIS + additional cost = ($84000 / 7) + 6000= $12000 + $6000= $18000 per yearB. Quote of Vision IT Technical ConsultantsCost of AIS = $105000 for 10 yearsService cost = $500 twice a yearTotal cost of quotation per year: 1
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= ($105000 / 10) + ($500 * 2)= 10500 + 1000= $11500 per yearC. Quotation of Total IT SolutionCost of AIS = $65000 for 5 yearsAdditional cost = $22500 for 5 yearsTotal cost of quotation per year: = ($65000 / 5) + ($22500 / 5)= 13000 + 4500= $17500 per yearTherefore, quotation given by Vision IT Technical Consultants is the most cost-effectivewhere total cost is worth of $11500 per year which least than other two quotations. ACTIVITY 31. Reasons due to which scope and nature of budgetary planning activity needs to be discussedwith colleaguesBudgetary planning is one of the highly important aspect in each and every kind of theproject. On the basis of this procedure, overall financial estimations about the project can beeasily assessed and predetermined. While making plan of the budget, it is mandatory to discusswith the relevant colleagues. The reason behind this is that, they provide adequate andappropriate information about the project expenses. (Nicholas and Steyn, 2017). Due to which allthe colleagues follow the proposed tactics and meet objective of project easily and properly. 2. Significance of cash flow budgetIn any kind of the project cash or liquidity has the very pivotal place which helps to runand complete the tasks. The statement in which cash incomes as well as cash receipts areincluded and which shows liquidity position to the manager is known as cash flow budget.Further, importance of this budget is as follows:2
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It provides information to the manager that up to which level total incomes will beincurred in the project at the end of a year. Apart from this, by considering this particularstatement total expenses which will occur in the project are also predetermined. At the end of upcoming year how much cash will be available with the company isanalysed through cash flow budget. On the basis of this, needs or requirements offinancials will be easily predetermined (Nordmeyer, 2016).Along with this, it shows that in next period company will be whether in profitablesituation or not. Therefore, correction and strategies can be made by the project manager .Therefore, it can avoid financial shortfalls and boost up overall performance.The cash flow budget helps the manager in order to compare actual data generated at theend of next year. Therefore, it can be assessed that whether entity meet budgeted valuesand improve performance or not. 3. Method through which availability of financials can be determinedIn the project or company financials are the basic requirement where it is necessary toassess its availability within workplace. There are number of methods included which help toascertain financial availability which are such as follows:One of the very best tool is cash flow analysis for the company where receipts andpayments both values involved. In this, cash balance at the year ending is determined andcorrective actions taken for raising fund.Another method is profitability ratio analysis where all the incomes are measured aftertaking base to the year ending revenue (Shen and et.al., 2017). It clearly indicates that, upto which level company generates profit and required amount. The net income andretained earnings are indication of the cash in the business or project. Liquidity ratios measure that company has up to which level cash at the end of anaccounting period. On the basis of this, availability of financials determined in anappropriate and adequate manner. 3
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ACTIVITY 4Requirements to review internal control proceduresThe process in which internal aspects of the accounting or any other thing are reviewedwithin project is known as the internal control. On the basis of this, all the element and resourcesinvolved in completion of the project are assessed properly. One of the key requirement for usinginternal control procedure is to analyse efficiency of the employees and workforce. If they notperform well and less productive, then corrective actions made to boost up their existing level ofefficiency. Apart from this, it is required to analyse cost aspect that whether expenses are high orproper as compared to budgeted. After reviewing this specific element, strategies made in orderto modify the conditions. With the project various kinds of issues and risks associated and todetermine them internal control process is highly needed (Internal Control Review, 2017).Henceforth, in order to identify risks and eliminate them the mentioned process is required forproject manager. ACTIVITY 51. Strategies to minimise shortfalls of the management accountingThe management accounting includes wide range of benefits which help to theaccountant in order to make effective financial decisions. However, it has some limitations alsowhich can be minimised by the accountant through below mentioned tactics:The accountant must enhance proper and effectual coordination among differentfunctions of the project. It helps to take highly effective decisions in the project andreduce total cost of the activities. The reason is that, management accounting not focuseson coordination as well as continuity.Apart from this, the accountant of project should make proper objective because inmanagement accounting objectivity is not better (Fregonara, 2017). When the objective isframed then easily able to minimise and avoid drawback regarding to this aspect.Further, the accountant manager requires employing cost management strategies in theproject. On the basis of this, issue of the management accounting i.e. expensive can beminimised and resolved in the proper direction. 4
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2. Process needs to consider for accessing financial plansIn order to assess efficiency of a team or section or company or division, financial planand information used by the analyst. There are different kinds of the procedures involved foraccessing such data. One of the best way is to consider financial statements of the entity underwhich different types of the financials included. Along with this, data given after segregatingdifferent divisions of the company in the financial disclosures. Another way in order to accessfinancial information is annual report of the enterprise. In this kind of report all the required dataincluded which is one of the best and reliable method (Papke-Shields and Boyer-Wright, 2017).On the websites of firm also such kind of information provided which are highly authentic.Therefore, to complete this particular task company's website should consider to the researcher. 3. Comment on the statement provided and implications for expendituresIn the company, various kinds of the employees and staff included who have theimportant place while preparing budgets and taking business decisions. The present statementindicates towards the operational staff who are highly able to identify and assess issues orconstraints relating to the budgets of job costing. As they provide information to the projectmanager about raising issues of the costing then able to use corrective strategies. On the basis ofthis, it can be clearly identified that organisation must consider and involve operationalemployees at the time of framing budgets. After involving the staff of operating departmentwhen management formulate budget then can estimate expenses in proper direction. Apart fromthis, the operational workforce has knowledge that at which stage of product manufacturing orproject process more financial, raw materials or other resources required. Along with this, theygive information related to wastage of the products which lead to impose additional costs on theoverall project (Suk and et.al., 2017). When these all the data and scope of expenses consideredwhile preparing budget then effective and achievable budget can be formulated. Hence, costsgiven by operational staff must be implicated by the organisation at the time of framing differentbudgets. ACTIVITY 61. Information which included in personnel budgetThe estimation statement prepared in the company on the basis of employees and theirexpenses is considered as the personnel budget. Key purpose of this particular kind of budget is5
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