MGT 5064 Week 1 Assignment 5

MGT 5064 Week 1 Assignment 5 | Florida Institute Of Technology  | Assignment Help 

Reading and Homework Assignment                     

Due: Tuesday, February 16before 11:59 PM Eastern Time

Chapters 3 and 4 The Concept and Measurement of Costs

You do not need the Levin book. Read the PowerPoint notes on Chapters 3 and 4of Levin and McEwan, 2^nd edition, SAGE Publications 2001, view the recorded class lecture and the “Solutions to Assignment for Ch3&4 of Levin” video, then answer the following questions completely:

Chapter 3

1.       (2 points) Define “cost” when used in cost analysis. Make sure you discuss the concept of opportunity cost.

2.       (3 points) Explain why you cannot primarily rely on budgets or expenditure documents to ascertain the costs of a project. In other words, why is it inappropriate to use budgets for estimating costs?

3.       (2 points) What is the ingredients approach to estimating costs?

4.       (4 points) What are the possible sources of ingredients information? Describe how each of the sources will help you in getting the needed information for project ingredients.

Chapter 4

5.       (2 points) What are market prices and when should they be used to determine the cost on ingredients? Give an example.

6.       (3 points) What are shadow prices and when should they be used to estimate the cost of ingredients? Give an example.

7.       (4 points) Explain briefly how the costs of personnel should be ascertained for both paid personnel and volunteers.

8.       (4 points) How should the costs of facilities be measured (owned and rented)?

9.       (4 points) Calculate the annualized value of a building that would cost $1 million to replace and has a life of 25 years. Use interest rates of 5%, 10%, and 15%. Show your calculations not just the final answers.

10.   (2 points) What are the methods for estimating the costs of equipment?

11.   (2 points) Assume that a piece of equipment has a replacement cost of $10,000 and an 8-year life. Calculate its annualized cost at an interest rate of 15%. Show your calculations.

12.   (3 points) Give a list of possible ingredients that you will use for your particular project (term paper project). What will be the sources of the needed information in estimating your project costs? List as many specific sources to estimate your costs including published information available on the internet as well previous cost estimates from published articles.

All work must be typed using Times New Roman or Calibri, 12 points font and must be submitted in MS Word; work submitted in any other format will not be graded. Submit/ upload your answers as an attachment using the CANVAS setting for Homework 5.