CONSTRUCTION ACCOUNTING AND
FINANCIAL MANAGEMENT SOLUTION
MANUAL EXAMINATION TEST BANK
FULLY UPDATED VIEW AHEAD
PREPARATION FOR ACCOUNTING
⩥ Who is responsible for financial management in a construction
company?
Answer: Owner or general manager of the company
⩥ why is construction financial management different from the financial
management of other companies?
Answer: They are faced with many unique challenges and problems not
faced by other companies in other industries.
⩥ What activities are involved in accounting for financial resources?
Answer: Making sure that the project and general overhead costs are
accurately tracked through the accounting system.
Ensuring that proper construction accounting system has been set up and
is functioning properly
, Projecting the costs at completion for the individual projects and
ensuring that unbilled committed cost that the company has committed
to pay but has not received a bill for--- are included in these projections.
Determining whether the individual projects are over -or underbilled.
Making sure that the needed financial statements have been prepared
Reviewing the financial statements to ensure that the company's
financial structure is in line with the rest of the industry and trying to
identify potential financial problems before they become a crisis.
⩥ what activities are involved in managing the company's cost and
profits?
Answer: Controlling project costs
Monitoring project and company profitability
Setting labor burden markups
Developing and tracking general overhead budgets
Setting the minimum profit margin for use in bidding.
FINANCIAL MANAGEMENT SOLUTION
MANUAL EXAMINATION TEST BANK
FULLY UPDATED VIEW AHEAD
PREPARATION FOR ACCOUNTING
⩥ Who is responsible for financial management in a construction
company?
Answer: Owner or general manager of the company
⩥ why is construction financial management different from the financial
management of other companies?
Answer: They are faced with many unique challenges and problems not
faced by other companies in other industries.
⩥ What activities are involved in accounting for financial resources?
Answer: Making sure that the project and general overhead costs are
accurately tracked through the accounting system.
Ensuring that proper construction accounting system has been set up and
is functioning properly
, Projecting the costs at completion for the individual projects and
ensuring that unbilled committed cost that the company has committed
to pay but has not received a bill for--- are included in these projections.
Determining whether the individual projects are over -or underbilled.
Making sure that the needed financial statements have been prepared
Reviewing the financial statements to ensure that the company's
financial structure is in line with the rest of the industry and trying to
identify potential financial problems before they become a crisis.
⩥ what activities are involved in managing the company's cost and
profits?
Answer: Controlling project costs
Monitoring project and company profitability
Setting labor burden markups
Developing and tracking general overhead budgets
Setting the minimum profit margin for use in bidding.
