Essays on Project Scenario for Highway Lights Case Study

Tags: budget
Download full paperFile format: .doc, available for editing

The paper “ Project Scenario for Highway Lights” is an informative variant of case study on finance & accounting. The total budget of the project is $ 1.8 million dollars to repair traffic lights along Nepean Highway. The costs associated with the project fall into two broad categories which are direct cost and indirect costs. Direct costsSalaries of the team members in the project- the total budget allocated for salaries is $ 0.1 million dollars. This is enough to cater to the 5 members of the project team. Equipment- the equipment to be employed in the project includes; Analog timings, Transistors, digital Timings, non-computers, microprocessors, Volume density controllers and the Electro-mechanical equipment.

The budget allocated for hiring equipment for the project, acquisition of new technology and amortization of the existing equipment is $ 0.3 million dollars to be used within the entire project period Facilities- The project will be performed from a new location which will be rented for a period of 15 months for purposes of planning and project execution. Also, the location will be used to set up a temporary traffic control room for testing the project upon completion.

The budget for this is $ 0.2 million dollarsFees and charges- The total fees and direct charges are estimated at cost $ 0.2 million dollars. Materials- Materials to be used during the project are estimated at cost. The total cost of materials is $ 0.4 million dollars. Services and statutory cost- the estimated cost of services required thought the project is $ 0.3 million dollars. Indirect costs These costs will includeOverheads- the estimated costs of products and services which are difficult to subdivide and allocate is $ 0.2 million dollarsGeneral administrative costs- these costs are estimated at 0.05 million dollars throughout the project life cycle. Subcontractor- these costs are estimated at $ 0.2 million dollars. Below is a tabulation of above costs Item Total Costs( in Millions) Direct costs   Equipment 0.3 Facilities 0.2 Fees and charges 0.05 Services and statutory cost 0.1 Salaries 0.2 Materials 0.3 Indirect costs   Overheads 0.2 General administrative costs 0.05 Subcontractor 0.2 Variance costs 0.05     Profits 0.15   1.8 The budgetary assumptions of the project were; There will be no significant technological advancements to interrupt the project within a specified period of time. There will be no significant inflation within the period. There will be no significant increase in traffic within the period. For the entire project, the cost is estimated to be $ 1.8 million dollars.

This budget is estimated to cover the entire project including profit margin. This section of the project outlines the processes, procedures, and documentation for planning, expediting, managing and controlling the costs of the project. In our project, we have identified correct and accurate measures of performance which include a monthly review of the project to establish the level and amount of work done against the budget. During the project implementation, the project manager will monitor the utilization of the available resources with the help of the project accountant to establish possible cost variances.

This constant monitoring of costs will ensure that the highest level of accuracy which is required for this specific project is achieved. As per the estimated cost breakdown provided above, which serves as a guideline for the entire project, it has been established to ensure correct adherence to the cost baselines as per the WBS. For the project, we have adopted financial reports, monthly reviews and variance reports as our key reporting deliverables. These report formats help to ensure our key performance indicators are progressively captured as the project is being implemented.  

Download full paperFile format: .doc, available for editing
Contact Us