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Ksivusya [100]
2 years ago
11

A software development project at day 70 exhibits an actual cost of $78,000 and a scheduled cost of $84,000. The software manage

r estimates a value completed of $81,000. What are the cost and schedule variances and CSI? Estimate the time variance.
Business
1 answer:
Rina8888 [55]2 years ago
7 0

Answer and Explanation:

Given:

Actual time (AT) = 70 days

Actual cost (AC) = $78,000

Scheduled cost (SC) = $84,000

Earned value (EV) = $81,000

Computation of cost variance:

Cost variance = Earned value - Actual cost

Cost variance = $81,000 - $78,000

Cost variance = $3,000

Computation of schedule variance:

Schedule variance = Earned value - Scheduled cost

Schedule variance = $81,000 - $84,000

Schedule variance = - $3,000

Computation of Cost schedule Index (CSI):

Cost schedule Index = EV² / (AC × SC)

Cost schedule Index = ($81,000)² / ($78,000 × $84,000)

Cost schedule Index = 1.00137363

Cost schedule Index = 1.001 (Approx)

Computation of time variance:

Time variance = (AT × CSI) - AT

Time variance = (70 × 1.001) - 70

Time variance = (70.07) - 70

Time variance = 0.07 days

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Maru [420]

Answer:

B. 2.8 years

Explanation:

Initial investment = -120,000+ 8,000 = -112,000

Yr 1 cash inflow = 40,000, hence net CF = 40,000-112,000 = -72,000

Yr 2 cash inflow = 40,000, hence net CF = 40,000- 72,000 = -32,000

Yr 3 cash inflow = 40,000, hence net CF = 40,000-32,000 = 12,000

Payback period = last year with negative net CF + (absolute net CF that year/ total CF the following year)

= 2 + (32,000/40,000)

= 2 + 0.8

= 2.8 years

3 0
3 years ago
Which of the following is a characteristic of a monopolistically competitive market? I. Each firm is a price-taker. II. Firms se
dangina [55]

Answer:

The correct answer is option II and III only.

Explanation:

Monopolistic competition is a market structure where there is a large number of buyers and sellers. The sellers in this market sell differentiated products which are close substitutes.  

There is a very low restriction on the entry of new firms in the market. Because of differentiated products each firm has some degree of market power. The firms face a downward-sloping demand curve. This means that the firms decide the price level.  

Though the firms enjoy zero economic profits in the long run.

3 0
2 years ago
Mackay gives a list of items (starting with "Two lasts of wheat, 448 florins") that were traded for one tulip root. He could hav
Oksana_A [137]

Answer:

For a better valuation of trade.

Explanation:

Mackay could have left out this list and simply said that the root cost 2500 florins. But he gave the list to have a better understanding of the valuation of trade. Now, the cost could have simply being layed out. But then this list helped helped to give a better perspective of the valuation of the bulb and also how it could be used to replace money

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3 years ago
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Gnesinka [82]

Answer:

775 units

Explanation:

By forecast,

June sales = 400 units

July sales = 700 units

if ending inventory equal to 125% of next month's sales

Then June's ending inventory = 125% × 700

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May's ending inventory = 125% × 400

                                       = 500 units

Opening inventory + production - sales = closing inventory

Using the formula above, where p = production

500 + p - 400 = 875

p = 875 - 100

p = 775

Production required for June is 775 units.

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2 years ago
What do individual shareholders gain when they buy shares of a company’s stock?
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