Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose the following costs and units of work completed were recorded on an activity: Month Monthly Expenditure Number of Work Units Completed 1 2 3
Suppose the following costs and units of work completed were recorded on an activity:
Month | Monthly Expenditure | Number of Work Units Completed |
1 2 3 4 5 6 | $1,200 $1,250 $1,260 $1,280 $1,290 $1,280 | 30 32 38 42 42 42 |
Answer the following questions:
- For each month, determine the cumulative cost, the cumulative work completed, the average cumulative cost per unit of work, and the monthly cost per unit of work.
- For each month, prepare a forecast of the eventual cost-to-complete the activity based on the proportion of work completed.
- For each month, prepare a forecast of the eventual cost-to-complete the activity based on the average productivity experienced on the activity.
- For each month, prepare a forecast of the eventual cost-to-complete the activity based on the productivity experienced in the previous month.
- Which forecasting method (b, c or d) is preferable for this activity? Why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started