Project Costs

 0    18 flashcards    rarry_o2
download mp3 print play test yourself
 
Question Answer
Main driver in project profitability
start learning
Assessment debit
What is included in a plan?
start learning
Fee and passthrough Revenue. Labour hours and cost by role and location. Paasthrough and non-passthrough cash cost by type
What Concur is?
start learning
SAP expense management
EAC Acronym
start learning
Estimate at completion
EAC meaning
start learning
Actual + plan
WIP Acronym
start learning
Work in progress
WIP explain
start learning
can only be booked on projects that are "In Hand", so don't just chase paperwork where revenue will be recognized
Accruals
start learning
Costs that have been artificially put into your P&L
How to accrue 3rd party cost
start learning
If third party did the job, the invoice was accepted but money has not been paid, we want to put the cost into the current period. We do not want to put them in the later period, if we have benefited in the current period.
Which software should be used to automatically accrue 3rd part costs
start learning
COUPA
WIP in single words
start learning
We have incurred a cost, but we have not yet benefitted from this cost
WIP vs Accruals
start learning
WIP - cost are put into P&L, because we are recognising revenue in this period. WIP, costs are deffered, because Revenue will be recognized in a later period.
If we want to recognize costs in a future period, what do we do with this in the current period?
start learning
We book that as WIP
Biggest item that is eroding project margin
start learning
unplanned extensions
What project extension usually mean?
start learning
More hours. Duration extends
What can we do to solve problem with
start learning
release team, charge client if he causes that
What is the second biggest cause of Margin erosion?
start learning
Resource Mix
Resource Mix
start learning
Cost of people is higher than initially planned. Maybe quality of the product is too low and team has to spend more hours to fix those problems.

You must sign in to write a comment