“How to Forecast Costs” Please respond to the following:
- Infer the main reasons for the high number of government contracting invitations extended for the purpose of obtaining certified cost or pricing data. Speculate on why the invitation is the last item in the gathering of cost and pricing process. Justify your response.
- Provide two to three (2-3) examples of other strategies to use to obtain cost or pricing data in a more accurate fashion. Predict the manner in which these examples could be utilized to also save the government funds. Provide a rationale for your response.
“Certified Costs” Please respond to the following:
- Imagine that a contracting office requests certified cost or pricing data related to your company, VectorCal. Speculate on what would happen to VectorCal in the long term if the cost or pricing data was defective or inaccurate. Provide a rationale for your response.
- Predict the manner in which VectorCal would absorb the certified cost or pricing data expense based on the information presented in Chapter 5. From the e-Activity, present two to three (2-3) examples of instances where companies have absorbed the certified cost or pricing data expenses similarly to your prediction of VectorCal. Speculate on what the manner in which the existing companies absorbed the certified cost or pricing data expenses bodes for the future of VectorCal.
“Labor Costs” Please respond to the following:
- Identify at least two factors that VectorCal uses to determine its labor costs for the creation of the navigation system that it is marketing to the government. Specify key reasons why these two factors are important in determining the labor costs for VectorCal’s navigation systems. Support your response with one example of such importance.
- From the e-Activity, speculate on key areas where most companies fall short when determining their labor costs. Suggest two (2) methods that a company CEO should use in order to reduce price labor cost inconsistencies. Support your suggestion with two (2) real-world examples.
- Watch the video titled “Business Calculations & Accounting: How to Calculate Direct Labor Cost” (1 min). Be prepared to discuss. Video Source: Youtube (2009, July 9). [Video file]. Retrieved from: http://www.youtube.com/watch?v=iukNYpj8WFw. This video can be viewed from within your online course shell.
“Work Breakdown Structure” Please respond to the following:
- Compare and contrast work breakdown schedule (WBS) and Phase Diagram in terms of appropriateness and effectiveness for the VectorCal navigation system. Determine which method best serves VectorCal’s needs. Provide a rationale for your response.
- Suggest two to three (2-3) other methods that VectorCal could use to obtain labor cost data in anaccurate fashion in addition to WBS and Phase Diagram. Predict the manner in which VectorCal could use these methods to decrease the amount of government funds needed.
“Indirect Costs” Please respond to the following:
- Predict VectorCal’s indirect costs based on the direct costs (e.g. direct labor, direct materials or both). Next, from the e-Activity provide two examples of companies with the same indirect costs that you predicted for VectorCal. Speculate on what the indirect costs of the existing companies bodes for the future of VectorCal.
- Suggest one way in which how VectorCal could estimate the future indirect costs for at least ten potential line items related to the production of its navigation systems. Determine three (3) line items that could affect the indirect costs the most. Justify your response.
- Use the Internet to research articles discussing predictions on the indirect costs for different companies. Be prepared to discuss.
“Direct Costs” Please respond to the following:
- Examine the methods that VectorCal could use for estimating the direct costs. Next, specify two to three (2-3) ways in which VectorCal could control these costs. Explain your rationale.
- Determine the manner in which VectorCal could estimate the future direct costs for at least ten potential line items related to the production of its navigation systems. Determine two to three (2-3) line items that could affect the direct costs the most. Justify your response.