You are a cost accountant for a firm that specializes in "small" (under 10 billion dollars) defense contracts for specialty electronics products, such as fully portable,
miniaturized CD-ROM imaging stations and global positioning transmitters/transponders. Your company is well respected in this field. One project up for competitive bids is a Field Service, Hands-Free, Individual Multi-Protocol Secure Communicator (a battlefield version of a cellular telephone, but built into each soldier's helmet, and containing necessary encryption technology). The Department of Defense wants 8 of these experimental devices to test their practicality. You have reviewed the contract specifications, and estimated that the first FSHFIMPSC should require 2350 hours, and that the product is subject to a 75% learning curve. All costs of the project (machine purchase, machine time, direct and indirect labor, and materials) have been bundled (allocated) into an hourly labor rate of $172 per hour. Determine the total project cost using the provided data.
From Table E.3, 2350 ? 4.802 = 11,284.7 hours will be needed. At $172 per hour, the total cost is $1,940,968.40.
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What will be an ideal response?
The profitability index is the ratio of the present value of the benefits to the present value of the
costs. Indicate whether the statement is true or false
Until a group has taken some joint action that turns out to be successful, the members will then believe that what they did actually works. Schein called this common belief and acting “social validation.” Explain what he means.
What will be an ideal response?
Rose and Wayne form a new corporation. Rose contributes cash for 85% of the stock and Wayne contributes services for 15% of the stock. The tax effect is
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